Definition
A call option is a type of financial contract that gives the buyer the right (but not the obligation) to buy a stock or asset at a fixed price within a specific time period. This fixed price is called the strike price.
Example
For example, you buy a call option for a stock with a strike price of Rupee 500. If the stock price rises to Rupee 550, you can still buy it at Rupee 500 and make a profit. If the price stays below Rupee 500, you can choose not to use the option.
Caution
Call options can be profitable if prices go up, but if the price does not rise, you may lose the premium paid for the option. They involve risk and should be used carefully.