| BASIS FOR COMPARISON | CALL OPTION | PUT OPTION |
|---|---|---|
| Meaning | Call option grants right to the buyer, not the obligation, to buy the underlying asset by a particular date for the strike price. | Put option grants the right to the buyer, not the obligation, to sell the underlying asset by a particular date at the strike price. |
| What it allows? | Buying of stock | Selling of stock |
| Relationship with stock market | Direct | Inverse |
| Potential gain | Unlimited | Limited |
| Investor looks for | Price Rise | Fall in prices |
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