A) Futures Contract
B) Option Contract
C) Index Futures Contract
D) Currency Swap
E) None of these
Correct Answer: B
Solution :
Options Contract is a type of Derivatives Contract which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the underlying asset at a predetermined price within or at end of a specified period. The buyer / holder of the option purchases the right from the seller/writer for a consideration which is called the premium. The seller/writer of an option is obligated to settle the option as per the terms' of the contract when the buyer/holder exercises his right.
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