What are Futures & Options contracts and what are its types?

Futures are contracts or an agreement between two parties to either buy or sell a fixed quantity of assets at a particular time in the future for a fixed price. An option is also a similar contract, except the parties are not obligated to fulfill the terms of the agreement. These contracts are then traded in the market. The minimum value of a contract is Rs 2 lakh. Futures and Options(F&O) contracts can be of various types including shares, indices, currencies as well as commodities.