eatures of Options Contract
1)1) PartiesParties: There are two parties to option
the option buyer and the optionseller
.The option buyer is the holder of theright under the contract either to buy or sellan asset by certain date for a certain price.Normally it would be exporter or importer orcorporate treasurer who would be buying theoptions. The option seller also known as thewriter of the option makes the right availableto the buyer. Normally the writer of theoptions will be the bank which provides theinstrument to its customers.