Second, the specific analysis:
Suppose the current price of a subject matter is 5000 yuan,
If the exercise price is 5.000, the intrinsic value is equal to 0.000.
If the exercise price of a call option is 4.500, the intrinsic value is equal to 0.500 (if the exercise price is 4.500, it can be sold at 5.000 immediately, so the intrinsic value is 0.500).
If the strike price of a call option is 4.000, then the intrinsic value is equal to 1.000 (if the strike price is 4.000, then it can be sold at 5.000 immediately, then the intrinsic value is 1.000).
Therefore, the lower the exercise price, the higher the option fee.
Three, generally speaking, there are six factors that affect the option price:
1, target price of the option:
1) The higher the futures price, the higher the call option price and the lower the put option price. If futures prices fall, the price of call options will fall, while the price of put options will rise.
2) That is to say:
Generally speaking, for call options, the underlying asset price will rise, the option price will rise, and the underlying asset price will fall, in the same direction as the underlying asset price. Put options, on the other hand, are the opposite. When the underlying asset price rises, the option price falls, and when the underlying asset price falls, the option price rises.
3. Exercise price of the option:
The exercise price is also an important factor affecting the option price. The strike price is the price used to trade futures when the option is exercised. For call options, if the exercise price is low, it means that you can make more futures at a lower price when exercising, so the option contract with a lower exercise price will be more expensive under the same other conditions; For put options, on the contrary, the higher the exercise price means that futures contracts can be shorted at a higher price when exercising, so the higher the exercise price of call options, the more expensive it is.
4. Time remaining before the option expires:
The price of options includes time value and intrinsic value. As time goes by, the time value of options will become smaller and smaller, so the more time left before expiration, the more expensive the options, whether call options or put options.
4. The volatility of the underlying futures:
Volatility is a very important concept of options, which can be understood as a measure of the change speed of the underlying price. Whether it is a call option or a put option, other things being equal, the option with high volatility has a higher price, while the option with low volatility has a lower price.
5. Interest rate:
The impact of interest rates on options is now manifested in two aspects. First, it will affect the price of the option subject matter; Second, it will affect the holding cost of options. Generally speaking, although the interest rate has an impact on the option price, it has little impact. If it is a stock option, there is also the impact of dividends. Stock options have not been listed in China, so dividends are not considered first.
6. Income from basic assets
Paying dividends and interest on the underlying assets will lower the price of the underlying assets. If the option execution price is inconvenient, the call option price will fall and the put option price will rise. Generally speaking, the impact on index options will not be too great.