Which financial contract gives the buyer the right, but not the obligation, to buy an underlying asset at a specified exercise price before or at maturity?

Explanation

Core Concept: A Call Option grants the holder the right (without obligation) to BUY an asset at the strike price. A Put Option grants the right to SELL. Context/Distractors: Futures and forwards create binding obligations on both buyer and seller. Swaps exchange cash flow streams. Exam Tip/Key Fact: Option buyers pay an upfront premium for this discretionary right.