Definition ∞ Call options grant the holder the right to purchase an underlying asset at a specified price before a certain date. This financial derivative provides leverage, allowing buyers to benefit from price increases in the underlying asset without owning it outright. The strike price represents the predetermined purchase cost, while the expiration date marks the final opportunity for exercise. Call options are frequently employed for speculative purposes or to hedge against potential upward price movements in a portfolio.
Context ∞ In the digital asset space, call options are gaining prominence as sophisticated trading tools for managing exposure to volatile cryptocurrencies. A key discussion involves the standardization of option contracts across various decentralized finance platforms and centralized exchanges. Future developments will likely include more liquid markets for crypto options and greater accessibility for a broader range of investors.
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