Call Option

A call option is a derivative contract that grants the buyer the right but not the obligation to purchase an underlying asset such as shares, commodities, or currencies at a predetermined price within a specified timeframe, primarily used for speculation and profit generation.

Related Terms

Buy-back (compensation) 

Buy-back (compensation) is a form of countertrade where an exporter of heavy equipment or technology agrees to purchase a certain percentage of the output from a new facility once it begins production. This arrangement benefits both parties involved in the trade.

Bureau of Indian Standards (BIS)

The Bureau of Indian Standards (BIS) is responsible for standardizing and certifying goods and services to ensure safety and reliability for consumers. Established in 1986, BIS also certifies gold based on Indian standards for fineness and purity through testing at its centers.

Bullion

Bullion refers to gold, silver, and other high-purity non-ferrous metals, typically shaped into bars or coins. It is recognized as a legal tender, held by central banks, and is utilized by investors to hedge against inflation and manage portfolios effectively.

Capital

Capital refers to the total amount of money a trader uses to buy and sell securities, often starting with “starting capital.” For investors, it encompasses cash and financial assets. In economics, capital includes machinery, inventory, and factories necessary for production.

Capital Gain

A capital gain is a profit an investor or trader earns by selling shares, commodities, futures, options, currencies, and other assets. More literally, a profit represents a gain on the capital invested, highlighting the importance of effective investment strategies in wealth accumulation.

Capital Gain or Loss

Capital gain is the profit earned from selling an asset, while capital loss is the loss incurred from selling an asset. Gains can be realized (after sale) or unrealized (before sale). Capital gains are taxable, and losses may offset gains for tax purposes.

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