What type of option gives the holder the right to purchase shares?

A call option is indeed the correct choice because it provides the holder with the right — but not the obligation — to purchase shares of a stock at a predetermined price, known as the strike price, before the option's expiration date. This type of option is typically used by investors who anticipate that the price of the underlying stock will rise. If the stock's price increases above the strike price, the holder can exercise the option to buy shares at the lower strike price, potentially realizing a profit.

In contrast, a put option gives the holder the right to sell shares, making it unsuitable for someone looking to purchase stock. A future option is not a standard term typically associated with equity options; it may refer to futures contracts which are related but differ from options in that they obligate buyers to purchase and sellers to sell at an agreed price. A margin option does not exist as a specific type of option; margin refers to using borrowed funds to trade, not to a particular kind of financial option. Understanding the fundamental differences between call options and other financial instruments is crucial for personal financial management and investment strategies.