FINOSUTRA

Option contract.... What are option contract /  Call and Put Options Definitions and Examples. Option contract.                           Option is a contract that gives the right, but not an obligation, to buy or sell the  underlying asset on or before a stated date/day, at a stated price, for a price. The party  taking a long position i.e. buying the option is called buyer/ holder of the option and the  party taking a short position i.e. selling the option is called the seller/ writer of the  option.  The option buyer has the right but no obligation with regards to buying or selling the  underlying asset, while the option writer has the obligation in the contract. Therefore,  option buyer/ holder will exercise his option only when the situation is favourable to  him, but, when he decides to exercise, option  writer would be legally bound to honour  the con...