what is call & put?

Answer 1

call is an option that gives you the right to buy at a certain price, put is an option that gives you the right to sell at a certain price

Answer 2

they are derivatives of some financial instrument,, which really means they dont hold equity,, many people buy these call or put options as a hedge or to protect their investment,, they are kinda like placing a bet,, betting on whether the value of the underlying financial instrument will increase or decrease by a certain date,, that date is given before purchasing and is called expiration date, an example: if someone buys a stock at $55 a share and normally sold in lots (100qty) the have an investment of $5500,, if they are concerned that their stock value is gonna fall he might buy a put at a value just below his purchase price,, this is called the strike price and gives the owner the right to sell his financial instrument(s) at say $53 a share even if the market value falls way below to $38 a share maybe,, he has protected his investment,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, a call option would give the buyer a right to own a financial instrument at a certain strike price of say $45 a share even if the value has increased way above,, once the person owns the financial instrument at the lower strike price, it can be sold at market value,, actually options are one of the best financial tools in the market,, they are not investments,, they are bets,, but they provide the best leverage to increase ur money,, there is usually a large enough market of buyers and sellers of these options that actually owning the under lying security isnt necessary,, but if u sell someone a call and they execute the option u must have or get the security,, anyway options are very cool and i love them,, hopefully all the corporate scams involving options wont reduce or restrict this market,, usually the expiration is about 3 mos,, leaps are what the extended calls and puts are called and dont expire for a few years,, options also usually come in lots of 100 but cost maybe only a couple dollars each,, maybe $300 for a stock priced at $50 a share,,very inexpensive way to control some stock,,

Answer 3

What Is The Value Of A Call Or Put Option?

A Call option represents the right (but not the requirement) to purchase a set number of shares of stock at a pre-determined "strike price" before the option reaches its expiration date. A call option is purchased in hopes that the underlying stock price will rise well above the strike price, at which point you may choose to exercise the option. Exercising a call option is the financial equivalent of simultaneously purchasing the shares at the strike price and immediately selling them at the now higher market price.

A Put option represents the right (but not the requirement) to sell a set number of shares of stock (which you do not yet own) at a pre-determined "strike price" before the option reaches its expiration date. A put option is purchased in hopes that the underlying stock price will drop well below the strike price, at which point you may choose to exercise the option.

Answer 4

"Call" and "Put" are options in the deriavatives like stock and commodity markets. If you want to go long you buy a call and if you want to go short you buy a put. For both you have to shell out a premium based on the spot value and time period.

Answer 5

They are option plays in the stock market, One is betting that the stock will rise in price and the other that it will go down.

Answer 6

people invest in shares of companies for getting income flow and appeciation.as the market developed new form of instrument came in share /financial markets like futures and options.future is different from shares in respect of the following.
1un like in share cash market one who deals in futures can have flexibility in delivery time as there are near month , next month and far month contracts.this gives the dealer to to square up whenever he wants within the delivery period allowed and when the rates are in his favour.
2 unlike in share cash market here one can deal more volume of trade as in futures contracts can be dealt by providing a margin money a percentage of total contract value
3charges are also lesser than share cash market for for dealing in futures market
4going short for a longer period is also possible in futures market
because of the above reffered points dealing in futures give more chances of getting profits by way of advantages in delivery periods,amount invested and charges.
in this way dealing in futures market gives abundant oppertunity for the investors to make profit when compared to investing in share cash market
however in share as well as in futures market ones chance of making profit or loss is unlimitedas the prices of shares/futures can go up or down
to avoid this unlimited risk new type of financial instruments were introduced in markets . they are called options.
in options the buyer has the right to avail the option but it is not obligatory on his part .so an option buyer has the oppertunity either to avail the option or to simply ignore it !
in this way buyer of option has limited risk of loss and unlimited chance of making profit.the loss will be only limited to perimium paid by him to enter in to option contracr.
however seller or writer of the option 's profit is limited to perimium he gets and can incur unlimited loss depending on the market movements
these options are of two types . they are called call option and put option, shortly referred as call and put .
a call option means 'the right to buy' and a put option means 'right to sell'
so one who likes to deal in share market has chances to do busines in cash markets,futures markets and option markets.futures and option markets are called as derivatives market also as they r derived from cash markets.
so options markets are the development over cash and future markets .
in option market we have 'call' and 'put'
so a call is 'right to buy' at a pre fixed price at a future date within the agreedupon period of time frame.
similarly a put is 'right to sell' at a pre fixed price at a future date within the agreed upon period of time frame

Answer 7

git is the word man