what is call option and put option, what is warrant, what
is derivative
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Answer Posted / anil kumar.sirangi
A derivative security is a financial contract whose value is
derived from the value of something else, such as a stock
price, a commodity price, an exchange rate, an interest
rate, or even an index of prices..
EX:-curd..which is derivative of milk..coz the price of curd
depends upon the price of milk..
call option:-(right to buy) it gives the holder the right
but not the obligation to buy an asset by a certain date for
a certain price.
put option:-(right to sell) it gives the holder the right
but not the obligation to sell an asset by a certain date
for a certain price.
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