2. Option refers to the right to buy and sell in a certain period of time in the future. It means that the buyer has the right to buy or sell a certain number of specific subject matter from the seller at a predetermined price (referring to the strike price) in a certain period (referring to American options) or at a certain future date (referring to European options), but has no obligation to buy or sell.
Option trading is actually the trading of such rights. The buyer has the right of execution and the right of non-execution, and can choose flexibly. Options are divided into OTC options and OTC options. OTC options trading is generally reached by both parties. There is a time limit for exercising rights, that is, exercising rights within the prescribed time limit (exercise period), neither before nor after the exercise period. It is particularly important to note that the exercise operation is overdue, and the warrants that have not been exercised after the expiration will be cancelled, and the warrants will have no value at that time. Generally speaking, investors can find the exercise period of warrants in the listing announcement.
3. Simply put, it is the price agreed in advance by the buyers and sellers of options. The exercise price is closely related to the warrant price, and the exercise price is attached to the warrant. Usually in the option contract, the underlying assets may be different, and the exercise price is different because of the different underlying assets. Option is a contract transaction. Take the CSI 300etf option as an example, it has a buyer and a seller. This also means that there needs to be a final transaction point between the two parties, that is, the transaction price between the buyer and the seller during the exercise and performance, that is, the exercise price of the option.
4. In general, the exercise price is the price agreed in advance by the buyer and seller of options. However, in the Shanghai and Shenzhen 300 index option rules, the exercise price is set by the exchange, and each option contract has its own exercise price, which will not change before the option expires. However, it should be noted that, in most cases, the option trading method adopted by the option buyers and sellers belongs to the contract of price difference trading, rather than the real exercise.