Futures and options are like insurance policy which can be taken for the stocks you have purchased
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Hi,
Your Question 1 :: cash settlement?
The cash market is a contrasts with a futures market, in which delivery is due at a later date for example commodity are traded for immediate delivery.
Your Question 2 :: What is call and put?
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 . The buyer and seller decide premium