in stock market i find the term futures and options ? what
was the meaning of that sensex futures and options
Answer Posted / sirisha
futures and options are derivative instruments to hedge
against price fluctuation risk,they both are entered through
contracts.
future contract is a standardized contract where in one
party agrees to buy/sell a lot, of shares at a pre
specified rate on a future agreed date.it is traded on an
exchange floor (ex: bse and nse).
option is contract where buyer acquires a right (but not the
obligation) to buy/sell qty of shares at p respecified rate
at an agreed future date.there are two option contracts
1.call option(right to buy)2.put option(right to
sell).sensex f&O are index futures and options
| Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
How will you differentiate between direct and indirect taxes?
What makes a good financial model?
What is the front news in today's Hindu paper?
What is inventory/stock turnover ratio?
What are the functions of commercial bank in India?
Give some examples of RRBs.
Do you have an aptitude test for new entrants I would like to take one
What do you mean by refinance?
What is 'current deposit account'?
How can government stop cash flow in the economy?
What is the monetary policy of RBI?
What will you comment on women empowerment?
Who regulated Capital Market?
Mention what are the excuses customer usually makes to get away from debt payment? How to deal with that?
What is the role of actuarial assistant in the insurance company?