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1. tamanna   I Like It. |Report Abuse|  Link|April 27, 2012 2:13:10 PMReply
If you wish to bet on the price of the futures contract so that it goes higher or lower in trading purposes then you need to buy options. When it comes to the types of options, there are mainly two types of options – call option and put option. There is a need of “call option” when you think that the underlying futures price would move higher. Corn call option means when you can expect corn futures to move higher. You should however try get some share tips when you go for investing your money in the market.
When it comes to “put option”, if you believe that the underlying future prices will move lower, then you can always opt for this option. There is another concept called, “soybean futures” where you can expect to move lower. This is also called “soybean put option.” Premium option is a term where you need to pay some kind of price when you buy an option. There is an expiry date for options where it means that it cannot be hold for a longer period of time. They last for only a certain period of time. Let us suppose that you buy an option in December, in that case, the option will expire in late November. So, you have to close the position before it gets expired.