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Call Option- The buyer of the contract has the rights to buy at the strike price
Put Option- The buyer of the contract has the rights to sell at the strike priceThe buyer and seller decides the premium in both the options.
Buyer is paying the premiumCALL OPTION:
Buyers gets the rights from the seller to buy at the strike price without any obligation to execute the contract on agreed premium to seller
PUT OPTION:
Buyer gets the rights from the seller to sell without any obligation to execute the contract on premium to seller
call: buyer has right to buy the shares in strike price
put: buyer has the right to sell the shares in strike price
Call Option : Expecting the market value moves up to <span style=”line-height: 19.2000007629395px;”>specific limit. (where buyer has right to buy the stock at strike price)</span>
Put Option: Expecting market value go down to specific limit. (where buyer has right to sell the stock at strike price)
Final premium is decided by the company or seller of the contract
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