in stock market i find the term futures and options ? what
was the meaning of that sensex futures and options
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Answer Posted / zia
A financial contract obligating the buyer to purchase an
asset (or the seller to sell an asset), such as a physical
commodity or a financial instrument, at a predetermined
future date and price.
A financial derivative which represents a contract sold by
one party (option writer) to another party (option holder).
The contract offers the buyer the right, but not the
obligation, to buy (call) or sell (put) a security or other
financial asset at an agreed-upon price (the strike price)
during a certain period of time or on a specific date
(excercise date).
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