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Padma, , Futures and Options, call, Caution Deposit, expiry date, lot size, MTM gains, MTM loss, put, Rights to Buy, Rights to Sell, strike price
In futures and options, the future contract allows the buyer as well as seller to trade on certain quantity at a future date where as in the Option contract, the buyer has the option to buy but there is no obligation for the buyer but the seller has to sell on the chosen date.. in this buyer has to pay a premium and the seller decides the premium.
In this cash settlement is involved.
Call Option , Put option , MTM gains / losses, Premium, strike price, lot size are the terminology used
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Hi,
your answers are well framed and appropriate.