Dairy Futures and Options Tutorial
Sellers and Buyers
Put Option - Buyers and Sellers
| Put Buyer |
Put Seller |
| Pays Premium |
Collects Premium |
| Has right to enter into a short future position |
Has obligation to accept long futures position if assigned |
| Pays no Performance Bond |
Insures put buyer by paying Performance Bond |
Call Option - Buyers and Sellers
| Call Buyer |
Call Seller |
| Pays Premium |
Collects Premium |
| Has right to enter into a long future position |
Has obligation to accept short futures position if assigned |
| Pays no Performance Bond |
Insures call buyer by paying Performance Bond |