What is ‘Called Away’
A term used to describe the elimination of a contract due to the obligation of delivery. This occurs if an option is exercised, if a redeemable bond is called before maturity or if a short position held in a security requires delivery.
Explaining ‘Called Away’
For example, if an investor has written a call option and the holder of the option exercises it, then the option has been “called away” and the writer has to complete his/her obligation to the contract.
When an investment is “called away”, it can result in an investor missing out on potential gains in the underlying asset.
Further Reading
- Filtering risk away: Global finance capital, transcalar territorial networks and the (un) making of city-regions: An analysis of business property development in … – www.tandfonline.com [PDF]
- Financial markets and economic growth – onlinelibrary.wiley.com [PDF]
- The financial crisis and the systemic failure of the economics profession – www.tandfonline.com [PDF]
- Kicking away the financial ladder? German development banking under economic globalisation – www.tandfonline.com [PDF]
- Home and away: Diasporas, developments and displacements in a globalising world – www.tandfonline.com [PDF]
- Kicking Away the Ladder, Too: Inside Central Banks – www.tandfonline.com [PDF]
- The Halloween indicator," Sell in May and go away": Another puzzle – pubs.aeaweb.org [PDF]
- The financial crisis and the systemic failure of academic economics – papers.ssrn.com [PDF]
- Global financial crisis, extreme interdependences, and contagion effects: The role of economic structure? – www.sciencedirect.com [PDF]
