Future:
Buyer has the rights to buySeller has the rights to sellSo both are obliged to honor the contractBoth are equally rewarded when the price moves in their favor.Settled on a daily basis.
Options:
Buyer has the rights to (buy in call option & sell in put option)Seller do not have any rights.Seller receives a premium to agree on the contract.Buyer is rewarded when the price go beyond the strike price in call option & below in put option.Seller’s reward is limited to the premium Settled at the expiry of the contract.
Hi sir,
your answers are well framed and appropriate