A call option is a form of exchange-traded option, a financial agreement between two parties, one of which is the buyer and the other is the seller of this type of option, one of the forms of exchange-traded option along with a put option.
A call option gives the option buyer the right to buy in the future a specified quantity of securities or other underlying asset at a price specified in the contract (strike price) within a limited period or to refuse such a purchase (does not impose an obligation to purchase). The seller is obliged to sell the item or financial instrument if the buyer decides to exercise his right to purchase. For this right, the buyer pays the seller an option premium (option price).
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