Call option
A call option gives the holder the right to buy the underlying security at a specified time in the future for a fixed price. On the other hand, the short side must deliver the underlying.
The payout diagram of a call option:
A call option gives the holder the right to buy the underlying security at a specified time in the future for a fixed price. On the other hand, the short side must deliver the underlying.
The payout diagram of a call option: