A futures contract is an agreement to buy or sell an agreed upon quantity of an underlying asset, at a specified date, for a stated price. So, while the price of oil is currently at Rs 700, if you think the price of oil will increase, instead of buying the oil now and storing it until you need it, you can buy a futures contract for oil with a specific date of delivery and price per barrel.
Call options provide the holder the right (but not the obligation) to purchase an underlying asset at a specified price (the strike price), for a certain period of time
Put options give the holder the right to sell an underlying asset at a specified price (the strike price)
Premium : Buyer and seller decide the premium
