The empty side requires a deposit, and when the price rises, it will require an additional deposit. If the empty side does not add margin, it will be forced to close the position.
Because the option is a mark-to-market and margin system, bears choose to give up because they are not optimistic about the future, and there will be no infinite losses.
Purchase option
1. Maturity value: The net income of the call option is called the maturity value of the call option, which is equal to the difference between the underlying asset price and the exercise price.
2. Profit and loss: The profit and loss of the call option refers to the surplus after the maturity value of the call option is deducted from the option fee (option price).
Extended data:
B-S model is the pricing formula of call option, namely:
C=S N(D 1)-L exp(-rT) N(D2)
Pricing formula
C- initial reasonable price of option
L- option delivery price
S- the current price of the financial assets traded.
T- period of validity of option
R- risk-free interest rate h of continuous compound interest.
N () —— Cumulative probability distribution function of normally distributed variables.
Purchase option
65438+ 10/month 1, the subject matter is copper futures, and its option exercise price is 1850 USD/ton. A buys this right and pays $5; Sell this right and get 5 dollars. In February 1, copper futures price rose to 1905 USD/ton, and call option price rose to 55 USD. A can adopt two strategies:
1. Exercise your rights
A has the right to buy copper futures from B at the price of 1850 USD/ton; After A puts forward the requirement of this exercise option, B must meet it and sell it to A at the exercise price of 1.850 USD/ton, while A can sell it in the futures market at the market price of 1.905 USD/ton and make a profit of 50 USD/ton (1.905-1. B lost $50/ton.
Step 2 sell rights
A can sell the call option for $55 and make a profit of $50 (55-5).
Baidu Encyclopedia-Call Option