F& O is quite different from cash market. While in cash market delivery of underlying asset can be opted but in future & option market, the same is settled through cash. Another big advantage being the duration for settling the traded asset.
The future contracts are based on the anticipated future price of the commodity. This gives an additional advantage to protect against any major deviations in the market. Hence all future contracts have legal rights to buy or sell a contract at a definite price before the expiry date. carried right to buy/ sell without having any obligation to honour the contract. hence, the rights to buy/ sell without obligations are bought at a premium which is decided through bids.
However, option contract
Hi sir,
your answers are brief and appropriate.