Option is a right not an obligation to buy or sell a stock (Share) at a specified price on or before a specified date.
Types of Options Contract:
Call Contract: Acall contract gives the buyer right but not the obligation to buy the stock ata specific price for a specified time and Vice versa.
Put contract: A put contract gives the buyer right but not the obligation to sell the stock at a specific price for a specified time and Vice Versa.
Difference between Futures & Options
A Future contract binds the buyer to purchase and seller to sell a lot stock orcommodity at future expiry date at the price fixed.
Option is aright not an obligation to buy or sell a stock at a specified price on or before a specified date.
Types of Options Contract:
Call Contract: Acall contract gives the buyer right but not the obligation to buy the stock ata specific price for a specified time and Vice versa.
Put contract: A put contract gives the buyer right but not the obligation to sell the stock at a specific price for a specified time and Vice Versa.
Difference between Futures & Options
A Future contract binds the buyer to purchase and seller to sell a lot stock orcommodity at future expiry date at the price fixed.
Option is aright not an obligation to buy or sell a stock at a specified price on or before a specified date.