Answer / kkr

Call Options give the option buyer the right to buy the underlying asset.

Put Options give the option buyer the right the sell the underlying asset.

Options provide right to buy or sell but not obligation any
underlying at a certain rate and certain time .options are
for short time maximum three month . those option which
have long expiry time are called as warrants.........

DERIVATIVE IS A FINANCIAL PRODUCT WHICH VALUE IS DERIVED
FROM UNDERLYING ASSET.

Answer / anil kumar.sirangi

A derivative security is a financial contract whose value is
derived from the value of something else, such as a stock
price, a commodity price, an exchange rate, an interest
rate, or even an index of prices..
EX:-curd..which is derivative of milk..coz the price of curd
depends upon the price of milk..

call option:-(right to buy) it gives the holder the right
but not the obligation to buy an asset by a certain date for
a certain price.

put option:-(right to sell) it gives the holder the right
but not the obligation to sell an asset by a certain date
for a certain price.

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