Derivates instrument has 2 different contracts. They are futures and options.
Buyer or seller of Futures contract has the right and obligation to buy or sell the underlying contract.
Buyer or seller of option contract has the right and no obligation to buy or sell the contract.
Settlement for futures or option contract will happen during the expiry day.
In option a premium is required to buy the underlying contract and premium get decay as the time gets nearer to expiry date.
, , Futures and Options, expiry date, Futures, Margin, MTM, options, premium
Hi,
Those of your content is neat and clear. It will be useful to recall