Future contract :
Buyer and seller have to executed the trade at the expiry date.

Call option:
Call option buyer have the right to buy the product at expiry date, but not obliged to buy. Here seller dont have any right, he have to sell if the buyer decided to do so. Seller get premium.

Put option:

Put option buyer get the right to sell the product at the expiry date, but don have the responsibility to sell. Put option seller (buer here) get the premium

1 Comment
  1. Naresh 4 years ago

    Hi,
    Good exercises, hope this helped you to recollect the workshop content

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