What is call option and put option

Question

Accepted Answer

A call option is a financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specific time period. A put option is a financial contract that gives the buyer the right, but not the obligation, to sell an asset at a specified price within a specific time period.

Call option allows the buyer to purchase an asset at a predetermined price, known as the strike price.
Put option allows the buyer to sell an asset at a predetermined price, known as the strike price.
Both options have an expiration date, after which they become worthless if not exercised.
Options are commonly used in financial markets for hedging, speculation, and risk management.
For example, if an investor expects the price of a stock to rise, they can buy a call option to profit from the price increase.
On the other hand, if an investor expects the price of a stock to decline, they can buy a put option to profit from the price decrease.

Accepted Answer

When you sure the stack's down in feature than you choose call and when you thought and and understand the stack's is growing up than you choose put, Thank you

What is call option and put option

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