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What are the general characteristics of option contracts?
Option contracts have the following general characteristics:

Basic assets: Option contracts are based on some basic assets, such as stocks, indexes, commodities and currency equivalents. The basic asset is the basis of the option contract, which determines the characteristics and value of the option.

Exercise price: the option contract stipulates the exercise price, that is, the price of buying and selling the underlying assets. The strike price is a key parameter in the option contract, which determines the intrinsic value of the option.

Buyer and Seller: An option contract involves two main participants, namely the buyer and the seller. The buyer is the party who buys the option right and has the right to choose whether to exercise the option. The seller is the party selling the option and has the obligation to perform the contract when the buyer exercises the option.

Option type: Option contract can be call option or put option. Call option gives the buyer the right to buy the underlying assets at the agreed price before the expiration date, while put option gives the buyer the right to sell the underlying assets at the agreed price before the expiration date.

Maturity date: the option contract specifies the maturity date, that is, the effective period of the option. The expiration date is the expiration date of the option, after which the option contract becomes invalid.

Royalty: The fee that the buyer needs to pay to the seller when purchasing the option is called royalty. Premium is the cost for the buyer to obtain options, which is determined by market supply and demand and related factors.

Trading unit: the option contract specifies the number of underlying assets represented by each contract, also known as trading unit. Trading units vary according to different markets and options contracts.

European options and American options: Option contracts can be European options or American options. European options can only be exercised on the expiration date, while American options can be exercised at any time before the expiration date.