Explanation:

Explanation: Option A: Futures Contract has been permitted long back. It is a contract between two parties where both parties agree to purchase or sell a particular commodity or any other financial instrument at a predetermined price at a specified time in the future.

Option B: Commodity Exchanges have been requesting SEBI for a long time to permit options trading in commodities be allowed. It was permitted recently.

Options Contract is a derivative product that offers an investor the right to purchase without any obligation to buy at the specified price/date. Suppose you want your dream car which as of now costs RM 100,000 (RM is a currency unit). You don’t have the money to buy the car now, but you will have after 3 months. A smart move would be to buy an “option” to purchase this car in the future (after 3 months). You pay the car owner a contract premium (say RM 1,000) to exercise this option. Remember, you have the option to buy or not buy the car. See the diagram below now. Suppose after 3 months, car prices increase to RM 150,000. This is a win case for you, since the options contract was to buy it at RM 100,000. You gain. Suppose car price reduces. Now, you won’t buy the car, because the contract was not an obligation (only a right) to buy the car. You would now pay the options premium (RM 1000 to the owner), and may be buy the car from the market.

Option C: You would heard have the Forward Markets Commission that earlier regulated forward markets. Now  SEBI has subsumed the organization.

A forward contract is a private agreement between two parties giving the buyer an obligation to purchase an asset (and the seller an obligation to sell an asset) at a set price at a future point in time.