What is call option and PUT option? Who decide the premium?

[bhavani]

Call option: the buyers have the rights to buy. When you expect the price to increase you can choose buy in the option trade called as call option .

Put option: the buyers have the rights to sell. When you expect the price to decrease you can choose to buy in the option trade called the put option.

In the option trade both buyers and sellers compete and the best price in which they agree,  trade is executed and it is known as the premium.

[Ramesh]

Call option is a contract where buyer has the rights to buy the stocks at the strike price. Buyer has no obligations other than the premium he paid to the seller.

Put options is a contract where buyer has the rights to sell the stocks at the strike price. Buyer has no obligations other than the premium he paid to the seller.

 

[Gopalakrishnan]

The buyers make money when crossed above the contract strike price, if not crossed the sellers make money  in call option.

The buyers make money when crossed below the contract strike price, if not crossed the sellers make money  in put option.

The buyers & sellers decide the premium.

 

[V.VEDANAYAGAM]

IN both option the buyer has the right to exercise the option
IN both option seller gets premium amount from the buyer to sign the contract
IN both option seller has no right but obligation to the buyer as per the option contract
IN both option the premium is decide by both the buyer and seller

[Swathi]

The buyer and the seller decides the premium. The premium is the amount which is given to the seller when the seller agrees to sign the contract. The seller then has no option but to obliged to thebuyer, while the buyer has the option to exercise the option.

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