Complete List of Futures

option

（1） Basic information of options

Option refers to the right that can be bought and sold in a certain period of time in the future. It is owned by the buyer after paying a certain amount of money (refers to the premium) to the seller to buy (refers to the call option) or sell (refers to the put option) from the seller at a predetermined price (refers to the strike price) within a certain period of time in the future (refers to the American option) or a specific date in the future (refers to the European option) The right to a certain amount of specific subject matter, but not the obligation to buy or sell. In fact, the option transaction is the transaction of such rights.

（2） . Classification of options

Options can be divided into different types according to different standards. According to the nature of the option contract, it can be divided into call options, put options and double options; It can be divided into American options and European options according to the way of execution; According to the delivery content of options, they can be divided into index options, foreign currency options, interest rate options and futures options.

（3） Basic factors of option contract

The so-called option contract refers to a standardized contract in which the option buyer pays a certain amount of premium to the option seller to buy or sell a certain amount of relevant commodity futures contract rights at a predetermined strike price within a specified period of time. The constituent elements of an option contract mainly include the following: buyer, seller, premium, strike price Notice and due date, etc.

（4） Option performance

The options can be exercised in the following three ways

• (1) Both the buyer and the seller can perform the contract by hedging.
• (2) The buyer can also perform by converting the option into a futures contract (obtaining a corresponding futures position at the strike price level specified in the option contract).
• (3) Any option will expire automatically if it is not used. If the option is null, the option buyer will not exercise the option until the expiration of the option expires. In this way, the option buyer will lose the premium at most.