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A call option is a contract giving the owner the right, but not the obligation, to buy a specified amount of an underlying security at a pre-determined price within a specified time frame. Related tags are icall-options, options, options-assignment, option-exercise and should be used when appropriate.
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Am I understanding buying options on stock correctly?
I'm just wondering if I am understanding stock options correctly.
Basically if I am watching stock XYZ. It's currently at $10 per share which I believe is low and should raise to 20 within 1 month.
If …