Friday 17 September 2021
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Put Option And Call Option

A put option is a stock market instrument that gives the holder the right to sell a certain amount of the asset in the contract at an agreed price over a specified period of time. Selling power is valuable. The buyer expects the share price to fall. In other words, the holder of the sale will benefit when the share price falls.

A call option is a contract between the buyer and the seller, in which the buyer buys or sells an asset for a specified price from the seller at the seller’s disposal. The buyer also pays the seller a fee called the par value, which is the transaction price. The option to trade is for a certain period of time and the rate of buying or selling an option contract is determined by competition on the exchange.

In the options contract, the buyer buys the contract in hopes of raising the price, but in the options contract, the buyer forecasts that the price will decline in the future.

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