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Option Terminology

Index Options: The underlying are Index such as Nifty, Bank Nifty, CNX IT etc. Stock Options: A stock option contract gives the holder the right to buy or sell the underlying shares at specified price. The buyer of an Option is the one who buys the right but not the obligation to exercise his option on the seller/writer after paying Option premium. Writer / seller of a call/put option is the one who receives the option premium and is thereby obliged to sell/buy the asset if the buyer exercise on him. Call Option gives the holder the right but not the obligation to buy an asset by a certain...
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