# Call

## How Call Options Work?

Call option contract buyer **chooses the size, period and strike price** for an option contract. *A **size*** refers to a number of options contracts that buyer is acquiring. A **period** is the number of days that the option contract will be active for. The pre-determined price the call option buyer can buy at is called the **strike price**.

**Premium** will be calculated for the chosen size, period and strike price for a call option contract. After that, the buyer will be asked to pay this amount in USDC using their wallet. **After payment, buyer will receive NFT option token that represents his bought option.** 

After blockchain confirms the transaction, the buyer will be able to **exercise the call option contract during the selected period** using the aforementioned NFT option token.

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Call Option is a **bullish** financial instrument. Buyer is bullish on the price of the asset during the period of the option.
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## How to Exercise a Call Option?

For exercising an call option contract, the buyer **sends the NFT option token to the protocol and automatically receives** amount of USDC corresponding to profit of his option. 

A call option contract buyer **is only able to exercise the contract before the expiration time** that the contract has been activated for, with a precondition that the price is above the strike price.

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All options on Hegic are cash-settled, which means the profits are distributed in USDC.
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## What Periods Are Available?

Call options contracts can be activated from **minimum 7 to 90 days longest**.

## What Strike Prices Are Available?

Call option buyers can choose **out of 4 different strike prices for their ETH or BTC call options contracts on Hegic**. 

Those are: **ATM price** (current price of ETH or wBTC on the market), and three **OTM Prices:** 

* **Market Price + 10% (+rounding) = OTM Call Strike #1**
* **Market Price + 20% (+rounding) = OTM Call Strike #2**
* **Market Price + 30% (+rounding) = OTM Call Strike #3**

**Example:** Let’s say the market price of ETH is **$2,337**.

The OTM strikes that will be available for trading are:

**For call options:**\
$2,337 \* 1.1 = $2,571 +rounding => **$2,600 Strike #1**\
$2,337 \* 1.2 = $2,804 +rounding => **$2,800 Strike #2**\
$2,337 \* 1.3 = $3,038 +rounding => **$3,000 Strike #3**

Whenever the price of ETH or WBTC changes, the corresponding OTM strikes will follow the market price. **The OTM Prices are about offering a range of -30% — +30% out-of-the-money strikes at any given time.**

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**The OTM options can only be exercised if the strike price is reached.**
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