Interested to Buy Any Domain ? << Click Here >> for more details...
in stock market i find the term futures and options ? what
was the meaning of that sensex futures and options
- 6 Answers
- 14431 Views
- Capital IQ, Genpact, I also Faced
- E-Mail Answers
Answer Posted / zia
OPTION:
1)A CALL OPTION is a financial contract between two
parties, the buyer and the seller of this type of option.
Often it is simply labeled a "call". The buyer of the
option has the right, but not the obligation to buy an
agreed quantity of a particular commodity or financial
instrument (the underlying instrument) from the seller of
the option at a certain time (the expiration date) for a
certain price (the strike price). The seller (or "writer")
is obligated to sell the commodity or financial instrument
should the buyer so decide. The buyer pays a fee (called a
premium) for this right.
2)A PUT OPTION (sometimes simply called a "put") is a
financial contract between two parties, the buyer and the
writer (seller) of the option. The put allows the buyer the
right but not the obligation to sell a commodity or
financial instrument (the underlying instrument) to the
writer (seller) of the option at a certain time for a
certain price (the strike price). The writer (seller) has
the obligation to purchase the underlying asset at that
strike price, if the buyer exercises the option.
FUTURE:
A contract to buy or sell a specified amount of a commodity
or financial instrument at an agreed price at a set date in
the future. If the price for the commodity or financial
instrument rises between the contract date and the future
date, the investor will make money; if it declines, the
investor will lose money. The term also refers to the
market for such contracts.
| Is This Answer Correct ? | 11 Yes | 1 No |
Post New Answer View All Answers
What is capital structure? What are the principles of capital structure management?
What Are The Important Macroeconomic Indicators That Influence Stock Market?
What do you mean by money laundering?
How is the growth of the bank since it opened?
How will you define the concept of diminishing marginal utility?
What according to you India should do to increase its exports?
What do you know about Chief of Planning Commission and Election Commission etc.
Explain the term double bottom?
Name some assets and liabilities for a bank?
What do you understand by Private banking?
How is a Bill of Exchange discharged? (
Role of Bhartiya Mahila Bank in women upliftment?
What Was The Comprehensive Assessment?
How is the RBI Lender of last resort?
dicsuss with appropriate examples the firm's asset management decisions
