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"A strike price is the set price at which a derivative contract can be bought or sold when it is exercised. For call options, the strike price is where the security can be bought by the option holder."

So if you buy a call of TESLA with a strike price of $500 with an expiration of March 18, 2022, does this mean:
1. On that date the seller of the call has to sell it to you for $500 per share.
2. You can decide at that time weather to buy it or not.
3. The seller must think TESLA is going to crash, since the share price is MUCH higher than that now

Is this right?
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