In today’s module we have learnt about the derivative instruments and its usage, spot market, cash market and Exchange’s roles in such derivative trades. The derivatives in India are Futures and Options. In option there are two types call option and put option.

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.
    Only the buyer pays premium not the seller.

    • Author
      MOHAN KUMAR R 5 years ago

      Yes Naresh you are correct. Your point is very crisp, I think i made it very complicated. I hope i will get it corrected in my future post. Thanks a lot 🙂

Leave a reply

©2024 | Rights Reserved | EQSIS | Terms and ConditionsPrivacy Policy

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

Log in with your credentials

Forgot your details?