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[Music] hello everyone and welcome back to the world of finance you are watching finance concepts within the hill for todays discussion within the derivative topic we have decided to talk about options everything about basics of options have been covered in this video if you recollect when we have taken the first introductory lecture on derivatives the very first example that I have given you was options but it is fine if you dont have any recollection of that lecture we are anyway going to start with the scratch when it comes to options so rinse options are derivative contracts and being derivative contracts obviously there are two parties involved the parties over here are known as option holder and option writer so let us take an example to understand things assume that I have given you an option that means there are two parties involved myself and you I have given you an option to buy shares of X limited at rupees 500 each so you understand what is the option that I have conveyed