EQSIS PRO

Day 3 – Basics of derivative market

Future buyer has right to buy and he must buy on expiry of contract
Future seller has right to sell and he must sell on expiry of contract
Call Option buyer has the right to buy and must pay premium to Call Option seller. Buyer has no obligation. Seller must pay difference amount if stock price goes above the deal price between buyer & seller
Put Option buyer has the right to sell and must pay premium to Put Option seller. Buyer has no obligation. Seller must pay difference amount if stock price goes below the deal price between buyer and seller

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