The important terminologies for options contract are as under:
i. Option Contract: Option Contract is a type of contract in derivatives which gives the buyer/holder of the contract the right (but not the obligation) to buy/sell the
underlying at a predetermined price within or at end of a specified period. The option contract which gives a right to buy is called a Call Option and the option contract that gives a
right to sell is called a Put Option.

ii. Option Premium: Premium is the price which the buyer of the option pays to the seller of the option for the rights conveyed by the option contract.

iii. Strike/ Exercise Price: Exercise Price is the price per unit of trading at which the option holder has the right either to buy or sell the underlying upon exercise of the
option.

iv. Strike price interval: Strike price interval isthe gap between any two successive strike prices which the Exchange may prescribe from time to time.

v. Expiration date: The date on which the option expires is known as the Expiration Date. On the Expiration date, either the option devolves to futures underlying or it
expires worthless.

vi. Option buyer: Option buyer is a person who has bought an option contract.

vii. Option seller: Option seller is a person who has sold an option contract

viii. Exercise: Exercise means the invocation of right by the option holder