Difference between call option and put option, Accounting Basics

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Difference between call option and put option

Response to the following questions:

1. What is an option? How does an option differ from a forward or futures contract?

2. What is the difference between a call option and a put option?

3. What must happen to the price of the underlying T-bond futures contract for the purchaser of a call option on T-bond futures to make money? How does the writer of the call option make money?

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Accounting Basics: Difference between call option and put option

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Accounting Basics: Difference between call option and put option

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