a little difficult subject
, , Futures and Options, call, put
, , Futures and Options, call, put
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How option contract differ from future contract?
option contract is different from future contract because of no obligation term to buyer. Hence buyer has option to exercise or not to exercise the contract.
Call Option: Buyer has rights to buy but no obligation
Put Option: Seller has rights to sell but not obligation
Seller of the contract is the one how offer such right to the buyer, so he get premium from the buyer. Premium is decided by the buyer and seller through counter.