2. 100 option. If it is stipulated in the contract that each option represents one share, then the 100 option will buy 100 shares at the agreed price and time; If the contract stipulates that each option represents 65,438+000 shares, then buy 65,438+000 shares at the agreed price and time. Option refers to a contract, which originated in the European and American markets at the end of 18. The contract gives the holder the right to buy or sell assets at a fixed price on or before a specific date.
The key points of option definition are as follows:
1. Choice is a right. An option contract includes at least a buyer and a seller. The holder enjoys rights, but does not assume corresponding obligations.
2. Option object. The target of an option refers to the assets you choose to buy or sell. Including stocks, national debt, currency, stock index, commodity futures and so on. Options are derivatives of these objects, so they are called derivative financial instruments. It is worth noting that the option seller does not necessarily own the underlying assets. The option can be "short". Option buyers may not really want to buy the underlying assets. Therefore, when the option expires, both parties do not have to make physical delivery of the subject matter, but only need to make up the price according to the price difference.
3. Deadline. The expiration date of the option agreed by both parties is called "expiration date", and if the option can only be executed on the expiration date, it is called European option; If an option can be exercised at any time before the expiration date, it is called an American option.
4. Execution of options. The act of buying and selling the underlying assets according to the option contract is called "execution". The fixed price agreed in the option contract, at which the option holder buys and sells the underlying assets, is called "exercise price". /kloc-options trading began in American and European markets at the end of 0/8. Due to the imperfect system and other factors, the development of option trading has been limited. 65438+In the early 1920s, put/call option traders were professional options traders. They don't quote continuously in the process of trading, and only quote when the price changes are obviously beneficial to them. This option trading is not omnipotent, it is not easy to transfer, the liquidity of the market is greatly limited, and this trading system is also frustrated. Criticism of the early trading system does not stop there. Taking XYZ option trading as an example, it is entirely possible that only one trader makes the market, which leads to the excessive bid-ask spread, thus leading to "price discovery"-the process of reaching the agreed price is blocked. Customers often ask, "How do I know that my order is sold at the best (that is, fair) price?" Concerns about market fairness have prevented the market from attracting more participants quickly.