we learnt difference between spot market and FandO market. In future market we have right to buy and right to sell with obligation. in option we have either right to buy or right to sell and with out obligation.
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Hi,
Answering to your question 1 :: What is the difference between physical settlement and cash settlement?:
In Physical Settlement the Stocks are delivered after paying the agreed price whereas in Cash Settlement only the difference between the agreed price and the market price is settled.