Connotation value refers to the total profit that can be obtained when the contract is performed immediately. Specifically, it can be divided into real options, imaginary options and even options.
The longer the time between the option and the expiration date, the greater the possibility of sharp price changes, and the greater the chance for the option buyer to make a profit by exercising the option. Compared with short-term options, option buyers pay higher royalties for long-term options. The time value of options decreases with the approach of the expiration date, and the time value of the expiration date of options is zero. The time value of options reflects the time risk and price fluctuation risk in the process of option trading. When the contract is 0% or 100%, the time value of the option is zero.
Tips:
1. The above contents are for reference only and do not make any suggestions;
2. Before investing, it is recommended that you first understand the risks existing in the project and have a clear understanding of the investors, investment institutions, chain activity and other information of the project, instead of blindly investing or straying into the capital market. Investment is risky, so be cautious when entering the market.
Reply time: February 2022-18. Please refer to the latest business changes announced by Ping An Bank in official website.