TYPES OF OPTION? CLASSIFICATION OF OPTION CONTRACT ON THE BASIS OF UNDERLYING ASSET?

Option may be classified with reference to the underlying asset. Stock Option : Option on the individual shares are known as Stock Options or Equity Options.Example:Tata Ltd Stock Option,Reliance Ltd Stock Option Index Option : An index option is the option on the index of securities . In India SEBI has allowed these options on Nifty and Sensex

Hii roshni TYPES OF OPTION Call Option :A option giving the buyer of the option the right but not the obligation to buy the required shares.(Right to buy) Put Options :A option giving the buyer of the option the right but not the obligation to sell the required shares .(Right to sell) CLASSIFICATION OF OPTION Option may be classified with reference to the underlying asset. Stock Option : Option on the individual shares are known as Stock Options or Equity Options.Example:Tata Ltd Stock Option,Reliance Ltd Stock Option Index Option : An index option is the option on the index of securities . In India SEBI has allowed these options on Nifty and Sensex Interest Rate Option : This option are taken on interest rate . Example:Interest Rate Cap.Floor & Collar.This option is not available in India Currency Option : This option are taken on currencies. This options are also not availabe in India