Talk:Call option

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There are no labels/title on the y-axes of those graphs. dave 04:23, 23 April 2006 (UTC)

Good call. The payoffs are usually in $'s or other currencies, so anybody familiar with the topic automatically assumes this, but the person who made this was obviously assuming too much for an encyclopedia. I'd made some graphs earlier, that happen to avoid this problem, but don't look so nice so I only posted one (on covered call). Feel free to give esthetic guidance, and sooner or later I'll get around to replacing those on this page. Smallbones

Thank you for noting, Dgrant and Smallbones. I am the person who made this.

I don't believe I was assuming too much. But this is a composite graph, and what I do assume is that by adding two additional labels, the graph would seem overloaded with redundant information, when it is already explained in the legend that the two drawn lines are "payoff" and "profit" (given a certain "share price at maturity").

Also, using a certain currency (USD, EUR, GBP, etc.) may be a bias in favor of a certain country or region, when anything that is accepted as a currency can be used. For this reason, no currency is currently specified. A solution could be to specify that all units are in "Currency".

I am happy to read your suggestions. Please comment on the above, and if you suggest a solution, I will make these changes as soon as possible. Or feel free to make the changes yourself/add new graphs.--Mfolozi 01:13, 26 June 2006 (UTC)

Could someone add a section on how corporate actions (merger, spinoff, etc) affect call options? Mdozturk 19:34, 21 November 2006 (UTC)

Contents 1 Question 2 Question regarding S & K 3 Duplicates material on Option (finance) 4 Graphs

[edit] Question

• (if you know the answer, please put it in the article)

Typically, does an investor pay a premium per share, or a set premium to purchase as many shares as he/she desires? Also, what is the ballpark range for a premium? AdamBiswanger1 02:01, 9 June 2007 (UTC)

[edit] Question regarding S & K

i believe whoever wrote the Wikipedia articles titled "call option" and "put option" got confused about the two, and mixed the places of K and S in the formulas presented on each page. please can some expert check this? Merton's Nobel Prize winning article written in 1973 gives the formulas with K and S switched! —Preceding unsigned comment added by 134.10.121.181 (talk) 04:30, 27 September 2007 (UTC)

Um, the formula looks OK to me. The payout of a call is indeed the amount that S is greater than K at expiration as stated in the article. Can you be more specific on what you'd like to change? Ronnotel 14:26, 27 September 2007 (UTC)

[edit] Duplicates material on Option (finance)

Much of this article duplicates material found in Option (finance). I'd like to rewrite this and bring the articles into line with each other. Ideally, this article should just discuss what is unique about calls and leave the majority of the discussion to Option (finance). Any comments? Ronnotel 14:29, 27 September 2007 (UTC)

[edit] Graphs

To a non-expert like myself, these graphs are useless. Please, label the axes with something. "Money" and "time," or whatever they represent. Right now they're gibberish. Mrwriter —Preceding comment was added at 00:30, 25 October 2007 (UTC) +1 I agree, they only confuse —Preceding unsigned comment added by 71.192.227.110 (talk) 21:16, 19 March 2008 (UTC)

PRESTIGE INSTITUTE OF MANAGEMENT IT IS A MANAGEMENT COLLEGE SITUATED IN THE DINDAYAL NAGAR , GWALIOR.

IT IS A  —Preceding unsigned comment added by 122.168.4.159 (talk) 11:20, 6 May 2008 (UTC)