The creation of options contracts: In 1973, the Chicago Board Options Exchange (CBOE) launched stock call options.

The option contract is a development of the futures contract. The difference between it and the futures contract is that the buyer of the option contract has the right but not the obligation to fulfill the contract.

An options contract refers to a standardized contract formulated by an exchange that stipulates that the buyer has the right to buy or sell related futures contracts at a predetermined price within the validity period specified in the contract. The so-called standardized contract means that except for the option price, which is formed through public bidding in the market, other terms of the contract are predetermined and are universal and unified.

The content of the option contract includes: contract name, trading unit, quotation unit, minimum price change, maximum daily price fluctuation limit, execution price, execution price interval, contract month, trading time, last trading day, Contract expiry date, transaction fees, trading code, listing exchange.

An options contract mainly has three elements: premium, execution price and contract expiration date.