difference between options and futurs



difference between options and futurs..

Answer / d.k.d

The primary difference between options and futures is that
options give the holder the right to buy or sell the
underlying asset at expiration, while the holder of a
futures contract is obligated to fulfill the terms of
his/her contract.

in case of options, for a buyer (or holder of the option),
the downside is limited to the premium (option price) he has
paid while the profits may be unlimited. for a seller or
writer of an option, however, the downside is unlimited
while profits are limited to the premium he has received
from the buyer.

Is This Answer Correct ?    3 Yes 2 No

Post New Answer

More Accounting AllOther Interview Questions

On which part we should give more attention while preparing balence-sheet.

5 Answers   Taikisha,


Supposed we raised the Bill to the party last year. Next year party refused to pay the bill. Now I want write off the ledger of that party. How i make journal entry?

2 Answers  


Expand ________BSF

2 Answers  


in which head ESI A/c will be come?

4 Answers  


what is the three basic rules of accounting?

3 Answers   TATA,






i am a mba fresher and i'm learning oracle finance.please give me ur valueble suggetions about my career in oracle finance? what r the requirements 2 get a good job in time?

0 Answers   DELL,


If you are making a transaction of Cash Purchase on 30th March and your accounting period ends on 31st March. Does it affect the Current Asset of the Company?

5 Answers   FIC,


according to double entry system there are three types of account... so what is the nature of suspense account??

1 Answers  


what is capital budgetting?

7 Answers   FactSet Systems,


general rule for personal account

1 Answers   ACS, HP,


why net profit is added to balance sheet, is there any reason

3 Answers  


What is life ?

7 Answers   KPMG,


Categories