Futures and options are stock derivatives that are traded in the share market and are a type of contract between two parties for trading a stock or index at a specific price or level at a future date.
Options can be of two types: call option and put option.
A call option allows you to buy the underlying asset at an agreed-upon price at a specific date.
A put option allows you to sell the asset at a specified price on a specific date.
In both cases, the trade is always optional. You can choose not to utilize your call or put option if the prices do not suit you.
