future
A financial derivative which represents a contract sold by 
one party (option writer) to another party (option holder). 
The contract offers the buyer the right, but not the 
obligation, to buy (call) or sell (put) a security or other 
financial asset at an agreed-upon price (the strike price) 
during a certain period of time or on a specific date 
(excercise date).

options 
options are 2 types 
1. call option
2. put option

 a Call Option gives its buyer the right to buy 100 shares 
of the underlying security at a fixed price before a 
specified date in the future-usually three, six, or nine 
months. For this right, the call option buyer pays the call 
option seller, called the writer, a fee called a Premium, 
which is forfeited if the buyer does not exercise the 
option before the agreed-upon date. A call buyer therefore 
speculates that the price of the underlying shares will 
rise within the specified time period. For example, a call 
option on 100 shares of XYZ stock may grant its buyer the 
right to buy those shares at $100 apiece anytime in the 
next three months. To buy that option, the buyer may have 
to pay a premium of $2 a share, or $200. If at the time of 
the option contract XYZ is selling for $95 a share, the 
option buyer will profit if XYZ's stock price rises. If XYZ 
shoots up to $120 a share in two months, for example, the 
option buyer can Exercise his or her option to buy 100 
shares of the stock at $100 and then sell the shares for 
$120 each, keeping the difference as profit (minus the $2 
premium per share). On the other hand, if XYZ drops below 
$95 and stays there for three months, at the end of that 
time the call option will expire and the call buyer will 
receive no return on the $2 a share investment premium of 
$200.

The opposite of a call option is a Put Option which gives 
its buyer the right to sell a specified number of shares of 
a stock at a particular price within a specified time 
period. Put buyers expect the price of the underlying stock 
to fall. Someone who thinks XYZ's stock price will fall 
might buy a three-month XYZ put for 100 shares at $100 
apiece and pay a premium of $2. If XYZ falls to $80 a 
share, the put buyer can then exercise his or her right to 
sell 100 XYZ shares at $100. The buyer will first purchase 
100 shares at $80 each and then sell them to the put option 
seller (writer) at $100 each, thereby making a profit of 
$18 a share (the $20 a share profit minus the $2 a share 
cost of the option premium).

A financial contract obligating the buyer to purchase an 
asset (or the seller to sell an asset), such as a physical 
commodity or a financial instrument, at a predetermined 
future date and price.
A financial derivative which represents a contract sold by 
one party (option writer) to another party (option holder). 
The contract offers the buyer the right, but not the 
obligation, to buy (call) or sell (put) a security or other 
financial asset at an agreed-upon price (the strike price) 
during a certain period of time or on a specific date 
(excercise date).

OPTION:
1)A CALL OPTION is a financial contract between two 
parties, the buyer and the seller of this type of option. 
Often it is simply labeled a "call". The buyer of the 
option has the right, but not the obligation to buy an 
agreed quantity of a particular commodity or financial 
instrument (the underlying instrument) from the seller of 
the option at a certain time (the expiration date) for a 
certain price (the strike price). The seller (or "writer") 
is obligated to sell the commodity or financial instrument 
should the buyer so decide. The buyer pays a fee (called a 
premium) for this right.

2)A PUT OPTION (sometimes simply called a "put") is a 
financial contract between two parties, the buyer and the 
writer (seller) of the option. The put allows the buyer the 
right but not the obligation to sell a commodity or 
financial instrument (the underlying instrument) to the 
writer (seller) of the option at a certain time for a 
certain price (the strike price). The writer (seller) has 
the obligation to purchase the underlying asset at that 
strike price, if the buyer exercises the option.

FUTURE:

A contract to buy or sell a specified amount of a commodity 
or financial instrument at an agreed price at a set date in 
the future. If the price for the commodity or financial 
instrument rises between the contract date and the future 
date, the investor will make money; if it declines, the 
investor will lose money. The term also refers to the 
market for such contracts.