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Basics of Options

Read time: 1 min. Source: https://goldmine.co.in/basics-of-options/

OPTIONS DEFINITION :Options are the derivatives instruments which gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date.

TYPES OF OPTIONS :

1. CALL OPTION – Option, which gives buyer a right to buy the underlying asset for a set price, at certain future date is called Call Option. Call option generates money when value of the underlying asset is rising upwards . 2. PUT OPTION – Option, which gives buyer a right to sell the underlying asset for a set price, at certain future date is called Put Option. Put option will extract money when value of underlying is falling.

Very super knowledge Thanks

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