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3 Cards in this Set

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Buyer, owner, holder

Investor who engages in opening purchase

Establishes a long position in the contract

Writer

Receives money, obligated to fulfill terms of contract upon exercise

Call

Gives the holder the right to buy 100 shares of the underlying stock from the writer, at a fixed price.

If the holder exercises the right, the writer of the option is obligated to deliver the stock.