The answer above is wrong:

First, don’t sell rather than don’t buy;

Second, huge losses are usually naked short , it is not a problem if there is corresponding underlying material coverage

In addition, the answers to your five questions are as follows:

1. A contract is 35.5*100=3550 US dollars, 8000 US dollars can buy 2 options, costing 7100 US dollars;

2. If the settlement price of the stock is 550 yuan, then the option settlement price = 0, and each option will lose 3550 yuan;

Settlement When the price is 650, the option settlement price is 100 yuan, and the profit per option is (100-35.5) * 100 = 6450 yuan;

When the settlement price is 750, the option settlement price is 200 yuan, and the profit per option is ( 200-35.5) * 100 = 16,450 yuan;

3. If you have no money when the option expires, you do not need to exercise it (save stock transaction fees), you can also get the same income by directly closing the option;

4. Same as above, the transaction costs of buying and selling a stock are definitely higher than closing options, and there is an overnight risk. If the market opens and falls the next day after exercise, you will lose money;