Futures and options market is where future buyer and future seller strikes on a deal to be executed at a later date. It helps to minimize risk and maximize the profits. Two types of options are call and put options. Gives the buyer an option to buy or sell at an agreed price. Sellers get a premium amount.
Srinikesh.K, , Futures and Options, Call option, FUTURES AND OPTIONS, physical and cash settlement, premium, Put Option, strike price
Hi sir,
Answering to your question 1 :: Can you tell in simple word about call&put option?
Call option – Buyer of the contract gets the “Rights to Buy” the stocks at the strike price on the expiry date of the contract.
Put Option – Buyer of the contract gets the “Right to Sell” the stocks at the strike price on the expiry date of the contract.
In option contract Buyer of the contract do not have any obligations and Seller of the contract do not have any rights on the contract.
Premium is decided between the seller & the buyer before signing the contract.