Thursday, December 30, 2021

Difference Between Call Option and Put Option

 

BASIS FOR COMPARISONCALL OPTIONPUT OPTION
MeaningCall 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 stockSelling of stock
Relationship with stock marketDirectInverse
Potential gainUnlimitedLimited
Investor looks forPrice RiseFall in prices

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