The predetermined price at which the buyer or seller of the call or put option can sell or buy the underlying security is called the strike price.

A put option is a contract giving the option buyer the right, but not the obligation, to sell a specified amount of an underlying security at a predetermined price within a specified time frame.

Call options are financial contracts that give the option buyer the right but not the obligation to buy a stock, commodity, or other asset or instrument at a specified price within a specific time period.

Options trading is the practice of buying or selling options contracts (at a specific price within a specific date). These contracts are agreements that give the holder the choice to buy or sell a collection of underlying securities at a set price by a specific date. Investors can, but don’t have to, own the underlying security to purchase or sell an option.

Futures are a type of derivative contract agreement to buy or sell a specific stock or commodity, currency at a set future date for a set price.