What is difference between a put option and a call option

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A manufacturer of furniture is concerned that the price of lumber will increase over the next three months. Explain how the manufacturer can protect against a rise in the price of lumber using lumber futures contracts ?

What is the difference between a put option and a call option?? What distinguishes an American option from a European option?

Reference no: EM131313108

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What is difference between a put option and a call option : A manufacturer of furniture is concerned that the price of lumber will increase over the next three months. Explain how the manufacturer can protect against a rise in the price of lumber using lumber futures contracts ?

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