Key Difference between Index Option and Stock Option. 1.Underlying Asset: •Stock Options: Based on individual company stocks; exposed to company-specific risks. •Index Options: Based on a basket of stocks (e.g., Nifty); represent broader market trends and systemic risks. 2.Settlement Method: •Stock Options: Physically settled — shares delivered on exercise. •Index Options: Cash ... https://topcollegesadmission.in/college-list/bca/bhopal