Exaplain the term put and call option ?

A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specific amount of an underlying asset at a specified price within a certain time frame. Put options are typically used by investors who believe that the price of the underlying asset will decrease in the future.

A call option, on the other hand, is a financial contract that gives the holder the right, but not the obligation, to buy a specific amount of an underlying asset at a specified price within a certain time frame. Call options are typically used by investors who believe that the price of the underlying asset will increase in the future.

Both put and call options are commonly used in financial markets as a way to hedge against risk, speculate on price movements, or generate income.