Option, also known as option, is a derivative financial instrument. It refers to the right to buy and sell in a certain period of time in the future. It means that the buyer has the right to buy and sell a certain number of specific objects to the seller at a predetermined price (referring to the strike price) in a certain period of time (referring to American options) or a certain date (referring to European options) in the future, but has no obligation to buy and sell.
The essence of option is to price the rights in the financial field, so that the transferee can exercise his right to trade or not within a specified time, and the obligor must perform it. In the transaction of options, the party who buys options is called the buyer, and the party who sells options is called the seller. The buyer is the transferee of the right, and the seller is the obligor who must fulfill the buyer's right.