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welcome guys to our channel banking Sutra today in this lecture well be covering next section in financial derivative series 1 which is options and in this lecture will be discussing options in details with their real diamond samples and specifically different types of options and what are the basic terminology is used in options so lets start todays lecture first of all we will be discussing the definition of option what is the textbook definition of option so that the thing will be clearer options may be defined as a contract between two parties whereby one party obtains the right but not the obligation to buy or sell a particular SL at a specified price on or before I specified date as you can see this option seller and there is one option where two parties and the contract happens in presence of maybe OTC or the counter or stock exchanges so the thing is that this is the docHub difference between among future and forward and options in future contact happens between two en