Forex Capital Markets : An option is a contract that provides the obtainer the right (but not the obligation) to obtain or sell a specified quantity of a given asset, at a specific expense, on or before a specified timenlike futures trading, the purchaser of an option is not obligated to obtain or sell at the exercise price, and will only do so if it is profitable; if the option is allowed to lapse, the purchaser loses only the very first purchase price of the option (the option money)he strike, or exercise expense, of an option is the specified, pre-determined expense at which an asset can be bought or sold if the option buyer exercises his right to do so on or before the expiration dayhe expense paid by the buyer to acquire the right to obtain or sell is known as a premiumhe one who is obligated to obtain (in case of a put option) or to sell (in case of a call option) the underlying asset in case the obtainer decides to exercise his option is known as the option seller, or writeris profits ar ... [Read More : Forex Capital Markets]
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