An option is an option, which refers to the right to buy or sell a certain quantity of a certain commodity at a certain price at a certain time in the future. It is a financial instrument based on futures, which gives the buyer (or holder) the right to buy or sell the underlying assets.

The holder of the option can choose the right to buy or not to buy, sell or not to sell within the time specified in the option. He can exercise his right or give up his right, and the seller of the option has only the obligations stipulated by option contracts.

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When trading with options, there will be the price of options, which is usually called "royalty" or "option fee". Option fee is the only variable in the option contract, and other elements in the option contract,

For example, the execution price, contract expiration date, transaction type, transaction amount, transaction time, trading place and other factors are all agreed and standardized in the contract in advance, while the price of options is obtained by traders bidding on the exchange. Option price is mainly composed of connotation value and time value.

Baidu Encyclopedia-Options