Wipro Interview Question

Differnce between options and future.

Interview Answers

Anonymous

Sep 10, 2019

Option have no obligation to buy or sell future have agreement to sell or buy a commodity on particular price at defined point if time.

Anonymous

Sep 29, 2019

Option contract have no obligation to buy or sell a underlaying asset in future. But Future contract have obligations to buy or sell a underlying asset in future. And Future contract preferred by Speculators and Arbitrators. But option contracts preferred by Hedgers. Option have less margin payments than futures. Future have high margin payments than options. Both are trading in Stock exchange market and both have unlimited profits and limited loses.