An option that gives the holder the right to purchase an underlying security only at the end of a fixed period for a fixed price is an

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A European call option gives the holder the right to purchase an underlying security at a fixed price, known as the strike price, on a specific date in the future, known as the expiration date. The holder has no obligation to exercise the option but may do so if the underlying security's market price is higher than the strike price at expiration. A European call option is exercised only at the end of its term, whereas an American call option can be exercised at any time before expiration.

An Option That Gives the Holder the Right to Purchase