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

[suraj]

Call option – it is the right to buy but with no obligation

Put Option – it is the right to sell but with no obligation

[Praveen M]

Call option – The buyer gets the rights to buy an asset(stock) at the strike price with no obligation.

Put option – The buyer gets the rights to sell an asset at the strike price with no obligation.

Premium mainly depends on the difference between the current market price and the strike price,  volatility of the asset, the time remaining before the expiry date.

[vasanth]

call option: buyers get the rights to buy the asset at the agreed price/ strike price with no obligation

Put Option: buyer of this contract rights to sell the asset at the agreed price/strik price with no obligation

buyers and sellers decide the premium

[sanjaivasan]

Call option – The buyer of the contract with rights to buy at the strike price
Put Option -The buyer of the contract with right to sell at the strike price
Premium is decided by both – buyer & seller

[canute]

Call Option : A Buyer of this contract has the Rights to Buy the asset from the seller, the contract can be executed for a fixed date, the strike price of this contract is fixed, and the cash settlement follows after the expire date, Buyer does not have any Obligations.

Put Option : The Buyer has the Rights to Sell the asset, the contract to be executed on the date fixed, at the strike price, the cash settlement followed by the contract which the Buyer does not have any obligations.

Who decides the premium : The Premium is decided by both the Buyer & Seller.

[Author]

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