Futures

Options

1. Both the buyer and seller are obligated to buy/sell the underlying asset.

1. The buyer enjoys the right but not the obligation, to buy or sell the underlying asset.

2. Contracts have to be settled on or before expiry date.

2. Contracts can be settled on or before the settlement date depending on whether they are "American" style or "European" style contracts.

3. Future Prices are affected mainly by the prices of the underlying asset.

3. Prices are affected by prices of the underlying asset, time remaining for expiry of the contract and volatility of the underlying asset.