Major in-price call option: the option holder has the right to buy the option target at the agreed execution price on the execution date, and may exercise it. That is to say, the fair value of assets on the execution date (assuming 1.5 million yuan) will be greater than the execution price (assuming 1.5 million yuan). Selling the option at a significant price: the option holder has the right to sell the option target at the agreed execution price on the execution date, and may exercise it. In other words, the fair value of the underlying assets on the execution date (assuming 500,000 yuan) will be less than the execution price (assuming 654.38+00,000 yuan). Major out-of-price call option: the option holder has the right to buy the option target at the agreed execution price on the execution date, but the possibility of exercising it is very small. In other words, the fair value of the underlying assets on the execution date (assuming 800,000 yuan) will be less than the execution price (assuming 654.38+0,000 yuan). Significant out-of-price put option: the option holder has the right to sell the option target at the agreed execution price on the execution date, but the possibility of exercising the option is very small. That is to say, the fair value of assets on the execution date (assuming 1.2 million yuan) will be greater than the execution value (assuming 1.0 million yuan).

Option refers to a contract, which originated in the American and European markets in the late18th century. This contract gives the holder the right to buy or sell assets at a fixed price on or before a certain date. The key points of option definition are as follows: 1. The right to choose 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. The object of the option. The subject matter 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 derived from these subject matter, so they are called derivative financial instruments. It is worth noting that the option seller does not necessarily own the underlying assets. Options can be "short". Option buyers may not really want to buy the underlying asset. 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. Due date. 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 on or 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 for the option holder to buy and sell the underlying assets is called the "exercise price".