Stock index options mainly include four basic elements, namely: basic assets, premium, exercise price and expiration date. Specifically, the basic assets are assets that are traded in a certain period of time as agreed in the contract; Option fee is the money paid by the option buyer to the seller in order to obtain the right, which is the price of the option; The exercise price is stipulated in the option contracts, and the buyer has the right to buy or sell the specific price of the underlying assets at the time agreed in the contract; The expiration date is the final effective date stipulated in the contract-that is, the remaining term of the stock index option. Generally speaking, whether it is bullish or bearish, the longer the remaining time of the option, the greater its time value, so the option has a time-dependent impairment effect.
According to the trading direction of stock index options, they can be divided into call options and put options. Call option refers to the right of option buyer to buy the underlying asset at a certain price in the future, while put option refers to the right of option seller to sell the underlying asset at a certain price in the future. According to the exercise time, stock index options can be divided into European options and American options. European options can only be exercised on the expiration date, and American options can be exercised on any day before the expiration date.
China's stock index options are designed as European options, so the options can only be executed on the maturity date, and there is no possibility of executing the assignment in advance.