1. Call option (call option)

A call option is also called a call option, a call option, a call option, an extended call option, or a "knock-in". A call option refers to the right of the agreement holder to purchase stocks at a specified price and quantity within the validity period specified in the agreement.

A call option gives the holder the right to purchase an asset (stocks, foreign exchange, commodities, interest rates, etc.) at a fixed price during a specific period. The value of a stock call option depends on the value of the underlying stock on the expiration date.

If the stock price on the expiration date is higher than the exercise price, then the call option is in real value, and the holder will exercise the option and obtain a profit; if the stock price on the expiration date is lower than the exercise price, then The call option is out-of-the-money and the holder will not exercise the option. At this time, the value of the call option is 0.

2. Put option (put option)

Put option means that the person who buys the option has the right to sell it at a certain price according to the provisions of the contract during the contract period of owning the option. to produce a certain number of items. A put option is also known as a put option, put option, put option, put option, put option, put, put option or knock-out option.

The so-called put option means that the buyer of the option has the right to sell a specific number of related commodity futures contracts at a specific final price within the specified validity period, but does not have the obligation to do so at the same time. Obligation to Sell. ?

Extended information:

The differences between call options and put options are as follows:

First, as the buyer of the option (whether it is a call option or a put option), only Rights without obligations. His risk is limited (the maximum loss is the premium), but his profit is theoretically unlimited.

The second is that as an option seller (whether it is a call option or a put option), he has only obligations but no rights. In theory, his risk is unlimited, but his income is limited (the maximum income is the premium ).

Reference materials:

Call options-Baidu Encyclopedia

Put options-Baidu Encyclopedia