Call Option

Call option is one of the two types of options (the other is put option).

It represents the right, but not obligation, to buy the underlying asset (for example a stock or a futures contract) at a fixed price (called strike price or exercise price) before or on some day in the future (called expiration date).

When you buy a call option, you have a bullish exposure on the underlying asset. The price of a call option goes up when the price of the underlying asset goes up and vice versa.