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Question
Calls and Puts confuse me, is there any solid definition that is helpful in understanding them?
Asked By syam - Commodity Trading
Answers (1)
Having a solid understand of futures will help provide a foundation in understanding options trading. A call is the right but not the obligation to buy the underlying futures at that strike price. A put is the right but not the obligation to sell the underlying futures at that strike price. The "right but not the obligation" illustrates that it is not required for you to exercise your option but you have the right to if you have incentive to do so.
Answered By : ghanasyam
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