If a long counterparty has the right but not the obligation to buy the underlying asset at a future date at a strike price,the contract is called a(n):

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This contract is an option, as it gives the long counterparty the right but not the obligation to buy the underlying asset at a future date at a strike price. A forward contract would require both parties to fulfill the obligations agreed upon at a future date, while a future contract would have standardized terms and would not give the option to exercise or not. An agreement for purchase is not a commonly used term in finance.

If a Long Counterparty Has the Right but Not the Obligation