The spot market or cash market is a public financial market in which financial instruments or commodities are traded for immediate delivery.
Call option is a contract through which buyer gets the “Rights to Buy” the stocks at the strike price on the expiry date of the contract. Seller signs the contract but do not have any rights on the contract. Buyer do not have any obligations.
Put Option is a contract through which buyer gets the “Right to Sell” the stocks at the strike price on the expiry date of the contract. Seller signs the contract but do not have any rights on the contract. Buyer do not have any obligations.
Seller gets the Premium amount for signing the call/put option contract, where the premium is traded between buyer and seller.
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