2. The rights and obligations of investors are different: both buyers and sellers of financial futures should exercise their rights and obligations in accordance with the contract. The buyer of the option has only power but no obligation, and the seller has only obligation but no right. Financial forward refers to the transaction of a certain basic financial asset on an agreed future date (delivery date) at an agreed price through negotiation between the two parties in the OTC market.
3. For different performance guarantees, both buyers and sellers of financial futures should open margin accounts and pay the margin. In financial futures, only the seller needs to pay the deposit in accordance with the regulations, so as to ensure that he can perform the contract as agreed. Financial forward contracts are forward contracts for equity assets.
4. Different cash flows: There is no cash delivery relationship between buyers and sellers of financial futures when trading, but they are settled on a daily basis, and the balance of the profit-making account will increase and the balance of the loss-making account will decrease. When the option contracts is concluded, the buyer must pay the option fee to the seller, and then no cash fee will be incurred before the performance period.
Extended data:
Precautions:
1. Because the call option gives the right to buy the underlying asset, its value will not exceed the value of the underlying asset itself, and at the same time, its value will not be lower than its intrinsic value because its time value is non-negative.
2. Because the put option gives the right to sell the underlying assets at a fixed price of X, and X is the highest income brought by the execution of the put option, the value of the put option should be lower than the execution price, while the European put option cannot be executed in advance, so its value is lower than the discounted value of the highest income, and the time value of the put option is also non-negative, so its option fee will not be lower than its intrinsic value.
3. Although American call options can be executed in advance without paying dividends on the underlying assets, the assets obtained by early execution will not generate dividends, but money can generate time value. Therefore, it is unreasonable to execute American call option in advance, so the reasonable range of its value is the same as that of European call option. However, when the underlying assets have dividends or interest payments, American call options may be executed in advance.
Baidu Encyclopedia-Financial Prospect
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Baidu Encyclopedia-Financial Options