What is call and put options and difference

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Call and put options are financial contracts that give the holder the right, but not the obligation, to buy or sell an asset at a specified price within a specific time period.

Call option: gives the holder the right to buy an asset at a specified price before a certain date.
Put option: gives the holder the right to sell an asset at a specified price before a certain date.
Difference: Call options are used by investors who expect the price of the underlying asset to rise, while put options are used by investors who expect the price to fall.
Example: A call option on a stock with a strike price of $50 gives the holder the right to buy the stock at $50, while a put option on the same stock gives the holder the right to sell the stock at $50.

What is call and put options and difference

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