
12
Call and Put Options
L E A R N I N G O B J E C T I V E S
What are call options?
What is meant by the in-the-
money value and the time
value of a call option?
Would an American call
option be exercised before
maturity?
When would a trader buy or
write a call option?
What are put options?
What is meant by the in-the-
money value and the time
value of a put option?
Would an American put
option be exercised before
maturity?
When would a trader buy or
write a put option?
In Chapter 11, the basics of options, options terminologies, and the procedure to trade options were
discussed. e details of what call and put ...