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).