Practical Law UK Glossary 9-107-5844 (Approx. 4 pages)
Glossary
Call option
A type of option which grants a right (but not an obligation) for a potential buyer to acquire an asset from a seller at a specified price (or a price to be calculated in accordance with a pre-agreed formula). The option is generally exercisable during a specified period. Call options can be used in joint ventures as a method of resolving deadlock situations. For example, if A has a call option enforceable against B, A can require B to sell B’s shares to him.