Theoretically speaking, the risk of the buyer of stock index futures options trading is limited, which is bounded by the option fee paid, while the risk of the buyer and the seller of stock index futures trading is greater.
Basic factors affecting the option price of stock index futures
There are mainly stock index futures price, execution price, volatility of stock index futures price, remaining time to maturity and risk-free interest rate. During the development of options, people have developed many models to calculate the value of options, among which BS model is the most representative. However, because the model only gives the theoretical price reference, the actual process will be different from the theoretical price because of the different estimates of price fluctuations and investors' bids.
The difference between stock index futures options and warrants
Theoretically, as long as the price is consistent, the position can be infinitely enlarged. If the premium price seriously deviates from the stock index option price, investors can achieve risk-free arbitrage by selling options and buying futures, thus restraining the price deviation.
The difference between stock index futures options and stock index futures
As a kind of options, stock index futures options are different from stock index futures. The main difference is that the option buyer only enjoys the right after paying the option fee to the seller, while the seller only assumes the obligation. As long as the buyer requests the exercise according to the trading rules, the seller must fulfill the corresponding obligations according to the terms of the option contract.