Explain briefly the following: Futures and options.

Futures is a contract between two parties to buy or sell a underlying asset of standardized quantity and quality for a price agreed upon specified day with delivery and payment occurring at a specified future date. Underlying assets for the purpose include equities, foreign exchange, interest bearing securities and commodities. An option contract conveys the right, but not the obligation, to buy or sell a specific security or commodity at specified price within a specified period of time. Options may be Put or Call options. The right to buy is referred to as a call option whereas the right to sell is known as a put option.