An option contract providing the purchasing rights to a buyer which gives the buyers privilege to purchase a particular derivative like a stock, at a certain price.
An option contract providing the selling rights an underlying asset at a pre-determined strike price on a particular date without any obligation.
Investors anticipate an increase in price.
Investors anticipate fall in price.
Profit is unrestricted since there is no upper limit to price rise.
Limited profit as price decreases will eventually be least at zero.
