Derivatives; derviatives is the product its price is derived from underlining asset (underlining asset my be stocks,bonds,commodities,etc) derivatives are as follows futures and options it normally call as F&O... futures:it is a contract between two parties to purchase and sell of products for future period at pre-determind price.... options:it is the right but not the obligation to buy or sell underlining assets.... call option:is the right but not the obligation to buy the underlining asset....buyer may refuse the contract before the maturity of contract. put option:it is opposit of call option...... The primary difference lies in the obligation placed on the contract buyers and sellers. In a futures contract, both participants in the contract are obliged to buy (or sell) the underlying