Purchase option (call option): what it is – Dictionary of Economics

Contract that grants its holder the right to buy an asset, at the stipulated price, from the date of signature and until its expiration (American option) or upon expiration of that term (European option). In exchange for the payment of a premium, the buyer acquires the right to exercise the option (to buy it), but not the obligation to do so. If the value of the asset at that time is higher than the agreed price plus the cost of the option, the holder will be interested in executing it.

Origin: Bank of Spain