Option is a kind of option, which refers to the right to buy or sell a certain quantity of a certain commodity at a certain price at a certain time in the future. It is a financial instrument based on futures, which gives the buyer (or holder) the right to buy or sell the underlying assets. The holder of the option can choose the right to buy or not to buy, sell or not to sell within the time specified in the option. He can exercise his right or give up his right, and the seller of the option has only the obligations stipulated by option contracts.

Option classification:

Due to the different trading methods, directions and targets of options, many options have emerged. Reasonable classification of options is more conducive to our understanding of foreign exchange options products.

1. According to the rights of options, there are two kinds: call options and put options.

(1) Call options (Cll options) means that the buyer of futures China has the right to buy a certain number of futures China silver fixed products from the seller of futures China contract at a pre-agreed price within the validity period of futures China contract, but has no obligation to buy them together. The option seller is obliged to sell the specific commodities specified in option contracts at the price specified in advance at the request of the option buyer within the validity period specified in option contracts.

(2) Put Options means that the buyer of the option has the right to sell a certain number of specific commodities to the seller of the futures contract at a pre-agreed price within the validity period of the futures contract, but has no obligation to sell. The option seller is obliged to purchase the specific commodities specified by option contracts at the price specified in advance at the request of the option buyer within the validity period specified by option contracts. [ 1

2. There are three types of crane delivery time: American option, European option and Bermuda option. American option means that you can exercise your rights at any time within the validity period stipulated in the contract. European option means that Japan can exercise its rights when the option contract expires, and the buyer of the option cannot exercise the Han Li before the contract expires. After the expiration, the joint fishing will automatically become invalid. Bermuda Option (Bemuda opton) is a series of L-term options that can be executed before the expiration date. The Hundred Days Ship can be a mixture of American options and European options, just as Bermuda is a mixture of American culture and British culture. At present, the emerging foreign exchange options business in China is similar to European options, but it is different. We will explain it in detail in the lecture on foreign exchange options business in China.

3. According to the subject matter of the option contract, there are stock options, stock index options, interest rate options, commodity options and foreign exchange options.