Second, the characteristics of hypothetical options: call options with futures prices lower than the strike price and futures prices higher than the strike price.
Third, the characteristics of parity options: the futures price is equal to the exercise price.
Note: An option is a contract, which stipulates that both parties to the contract will buy or sell a certain number of the subject matter at a certain price (strike price) at a certain time.
The buyer of the call option predicts that the price of the subject matter will rise when the contract expires, so only when the price of the subject matter really rises at the expiration, will the option buyer exercise the option, and then the option will be valuable. Otherwise, the buyer will not exercise the option, so the option is worthless.
When the strike price of a call option is much lower than the target price at that time, the option is called extremely real option. When the strike price of a put option is much higher than the price of the subject matter at that time, the option is called extreme real option.
Extended data:
Trading rules of virtual options:
The trading volume of value options is much larger than that of real options, which is also a feature of derivatives trading. When the option premium is quoted above 3, the minimum change range of the premium is 0.05 point, and the multiplier is 100000, so every change of 0.05 point is equivalent to 5000.
When the royalty quotation is less than 3, the minimum change range is 0.0 1 point, so the change of 0.0 1 point (multiplier 10) is equivalent to 1000. Judging from the trading situation of exchange options, the prices of virtual options are relatively low, generally lower than 3. Moreover, the farther the execution price is from the spot price, the lower the commission price, and the lowest price is 0.0 1. Although it is in imaginary value, the transaction volume is much higher than the real value and the pair.
The main motivation for investors to buy and sell virtual options in the market is to win the profit possibility of 1% at a small cost. Investors have a basic understanding of the characteristics of options, which are financial derivatives. Retail investors are generally buyers of options, with low cost.
But if you can make a profit in the future, the rate of return will be very considerable relative to the cost. The cost of 1000 is equivalent to buying lottery tickets, and the possibility of profit from options may be higher than the winning rate of lottery tickets, so turnover is guaranteed.
Baidu encyclopedia-real options
Baidu Encyclopedia-Virtual Options
Baidu encyclopedia-fair price option