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Call Option
A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specific time frame.
American Option
A category of options agreement allowing execution at any moment prior to its expiry date.
European Option
A type of financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price on the option's expiration date.
Exercise
In financial contexts, it refers to the act of invoking the right to buy or sell the underlying asset as specified in a derivatives contract, such as options or warrants.
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