Answer:
In the options market, the bid price refers to the highest price that a buyer is willing to pay for an option, while the ask price refers to the lowest price that a seller is willing to accept for an option. When you click on the bid price, you are initiating a buy order, while when you click on the ask price, you are initiating a sell order.
The call option gives the holder the right, but not the obligation, to buy the underlying asset at a specific price (known as the strike price) on or before a certain date (known as the expiration date). When you buy a call option, you are taking a long position in the option, which means you are hoping the price of the underlying asset will increase so that you can exercise your option and buy the asset at a profit. When you sell a call option, you are taking a short position in the option, which means you are hoping the price of the underlying asset will stay the same or decrease, so that the option will expire worthless and you can keep the premium you received for selling the option.
Step-by-step explanation: