Call put

call buyer buys a "RIGHT" to buy a share at excercise price. so call seller has " OBLIGATION" to sell when buyer approaches him

for eg: today call is sold at excercise price of 50 for rs. 5 per share.

             in this case buyer pays rs 5 as premium and he has right to buy at expiration share at rs 50..

             premium would be income for seller.

put buyer buys "RIGHT" to sell a share at excercise price. So Put seller has "OBLIGATION" to buy share when buyer comes to him.

for eg: today a put is sold at excercise price of 50 at premium of rs 5 per share.

            here, buyer has right to sell share at rs 50 at expiration by paying rs 5 per share as premium.