1. Stock option. Similar to stock futures, stock options also include three types: single stock options, stock portfolio options and stock index options.
Single stock option (hereinafter referred to as "stock option") refers to the right of the buyer to buy or sell a certain number of related stocks at the agreed price on or before the expiration date stipulated in the contract after paying the option fee.
Stock portfolio option is an option based on a basket of stocks, and the representative variety is the option of exchange-traded funds.
Stock index option is an asset based on stock index. After paying the option fee, the buyer has the right to settle the profit and loss with the agreed index and the actual market index within the validity or expiration date of the contract. Stock index options have no specific stocks that can be delivered in kind, and can only be settled by cash netting.
2. Interest rate options. Interest rate option refers to the right of the buyer to buy or sell interest rate instruments with a certain denomination at a certain interest rate (price) within the validity period or expiration date of the contract after paying the option fee. Interest rate option contracts are usually based on interest rate instruments such as short-term, medium-term and long-term government bonds, Eurodollar bonds and large denomination negotiable certificates of deposit.
3. Currency options. Currency option, also known as foreign currency option and foreign exchange option, refers to the right of the buyer to buy or sell a certain amount of foreign exchange assets at the agreed exchange rate within the validity period or expiration date of the contract after paying the option fee. Currency option contracts are mainly USD, EUR, JPY, GBP, Swiss franc, Canadian dollar and Australian dollar.
4. Financial futures contract options. Financial futures contract option is a kind of option with financial futures contract as the trading object, which gives its holder the right to buy and sell a specific financial futures contract at an agreed price within a specified time.
5. Swap options. Financial swap option is an option with financial swap contract as the transaction object, which gives its holder the right to swap with the counterparty at a specified time and under specified conditions.