A call option gives the owner the right to, at a given time; buy an asset at a fixed price. The
asset traded on a normal basis is the exchange of options on stocks and bonds, although any
kind of asset can be traded (Ross et al, 2005). These options are commonly issued by the
head owner within the company and are set to have an expiration period of 2-3 years. At the
end of the expiration time, the holder of the option buys the underlying asset to the price
agreed on the contract. Since call options entitles published stocks in the company, the owners
do not risk any dilution of their stocks (Smitt, 2002).