A futures contract is a legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange. The buyer of a futures contract is taking on the obligation to buy the underlying asset when the futures contract expires. The seller of the futures contract is taking on the obligation to provide the underlying asset at the expiration date.Call option is an option to buy assets at an agreed price on or before a particular date.Put option is an option to sell assets at an agreed price on or before a particular date.The premium is decided by the willingness of the buyer and seller.

2 Comments
  1. Naresh 5 years ago

    Hi,
    In options contract , Call option buyer has right to buy with no obligation while Call option seller has an obligation to sell at the end of expiry . Put option buyer has right to sell with no obligation while Put option seller has an obligation to buy.

  2. Author
    Dinakaran S 5 years ago

    Thanks for the correction

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