What term describes a contract granting the buyer the right, but not the obligation, to buy an underlying asset at a specified price before or on an expiration date?

Explanation

• A Call Option gives the holder the right to purchase an asset at the exercise (strike) price within a specified time frame.
• A Put Option gives the holder the right to sell an underlying asset at the strike price.
• Unlike futures contracts, options contracts confer rights rather than binding performance obligations on the buyer.