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option in equity shares

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Querist : Anonymous

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Querist : Anonymous (Querist)
13 August 2010 Can any one tell me about option at equity shares. Plz
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Aditya Maheshwari

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Aditya Maheshwari (Expert)
13 August 2010 An option grants the buyer the right, but not the obligation, to establish a position previously held by the seller of the option.

A put is the option to sell a futures contract, and a call is the option to buy a futures contract. For both, the option strike price is the specified futures price at which the future is traded if the option is exercised.
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