Option with stock option is well understood: it means that the company grants employees the right to buy a certain share of the company's shares at a fixed option price within a certain period of time (such as 10 year). When exercising the option, the employee who enjoys the option only needs to pay the option price, regardless of the trading price of the stock on the day, and can get the stock under the option. The difference between the option price and the trading price of the day is the employee's profit. If employees want to cash in profits immediately when exercising their options, they can directly sell the stocks under their options and get the cash difference between them without holding the stocks. Stock option is essentially a kind of beneficial right, that is, the right to enjoy the benefits brought by the stock price increase under the option. Official explanation: Option, also called option, is a derivative financial instrument based on futures. In essence, the option is to price the rights and obligations in the financial field separately, so that the transferee of the right can exercise his rights on whether to trade or not within a specified time, and the obligor must perform it. In the transaction of options, the party who buys options is called the buyer, and the party who sells options is called the seller. The buyer is the transferee of the right, and the seller is the obligor who must fulfill the buyer's right. Interest rate options are options linked to interest rate changes, and are settled in cash or interest rate-related contracts (such as interest rate futures, interest rate forwards or government bonds) at maturity. The earliest interest rate option traded in the OTC market is the interest rate cap option introduced by 1985. At that time, banks issued floating interest rate bills to the market and needed financial instruments to avoid interest rate risks. Interest rate option refers to the right of the buyer to buy or sell interest rate instruments with a certain denomination at a certain interest rate (price) within the validity period or expiration date of the contract after paying the option fee. Interest rate option contracts usually target interest rate instruments such as short-term, medium-term and long-term government bonds, Eurodollar bonds and large denomination negotiable certificates of deposit. Interest rate option is a kind of right about interest rate change, and the buyer pays a certain amount of interest rate option after paying the option fee.