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An option is a contract, you are buying the right to buy or sell an asset at some predetermined price within a specified period of time.
Each option has a buyer and a seller (writer) , (Issue a stock , you write an option)
Call Options: you pay a fixed price to have the right of buying a share of stock.
The Strike Price (Quotations) and the exercise price (price you exercise the option)
Each option has an expiration date, after that day, you cannot exercise the option
Options are traded on a number of exchanges with the Chicago Board Options Exchange (CBOE)


References:
https://www.sec.gov/oiea/investor-ale...