What Items Are Included In The Options Contract?

Each Option contract all Include Four special ones. project Target assets, options exercise price, quantity and exercise time limit.

Underlying Assets each option contract has one underlying asset, and the underlying asset can be any one of the total financial products, such as general stock, stock index, futures contract, bond, foreign exchange and so on. In general, the option of holding underlying assets as stock is called stock option, and so on. Therefore, options include stock options, stock index options, foreign exchange options, interest rate options, futures options, etc. they are usually traded on stock exchanges, options exchanges, futures exchanges, and, of course, over-the-counter transactions.

The exercise price of option (Strike Price or Exercise Price) is used to purchase the price of underlying assets when exercising options. In most transactions, the underlying asset price is close to the exercise price of the option. The exercise price is clearly stipulated in the option contract, which is usually given by the exchange according to a certain standard, so the option of the same bid has several different prices. Generally speaking, when an option starts trading, each option contract will give several different execution prices according to a certain distance, and then increase according to the change of the underlying assets. As for the price of each option, the price depends on the price fluctuation of the underlying asset. When investors buy and sell options, the general principle of choosing execution price is to choose an active execution price near the underlying asset price.

The number (Quantity) option contract specifies that the contract holder has the right to buy or sell the underlying assets. For example, a standard option contract can buy and sell stocks of 100 shares, but there are exceptions in some exchanges, such as the option contract traded on the Hongkong exchange, the number of underlying stocks equal to the number of transactions per hand.

The exercise time limit (maturity date) (Expiration date or Expiry date) has an effective execution period for each option contract, and if the time limit is exceeded, the option contract will become invalid. Generally speaking, the exercise time limit of options is from one to three, six, nine months, and the effective period of a single stock option contract is about nine months. The expiration date of OTC options is tailored to the needs of buyers and sellers. However, in the option trading place, any stock should be classified into a specific effective period, and the effective period can be divided into several types: 1, April, July, October; February, May, August and August; They are called the monthly cycle, the February cycle and the March cycle respectively.