Option refers to a contract, which originated in the American and European markets in the late18th century. This kind of contract gives the holder the right to buy or sell assets at a fixed price on or before a certain date. The key points of option definition are as follows:
The right to choose is a right. An option contract includes at least a buyer and a seller. The holder enjoys rights, but does not assume corresponding obligations.
2. The object of the option. The subject matter of an option refers to the assets you choose to buy or sell. Including stocks, national debt, currency, stock index, commodity futures and so on. Options are derived from these subject matter, so they are called derivative financial instruments. It is worth noting that the option seller does not necessarily own the underlying assets. Options can be "short". Option buyers may not really want to buy the underlying asset. Therefore, when the option expires, both parties do not have to make physical delivery of the subject matter, but only need to make up the price according to the price difference.
3. Due date. The expiration date of the option agreed by both parties is called "expiration date", and if the option can only be executed on the expiration date, it is called European option; If an option can be exercised at any time on or before the expiration date, it is called an American option.
4. Execution of options. The act of buying and selling the underlying assets according to the option contract is called "execution". The fixed price agreed in the option contract for the option holder to buy and sell the underlying assets is called the "exercise price".
Domestic option development
2065438+February 9, 2005, SSE 50ETF option was listed on Shanghai Stock Exchange, which is the first domestic on-site option. This not only announces the arrival of China option era, but also means that China has a full set of mainstream financial derivatives.
On March 3rd, 2007, the soybean meal option was listed on Dalian Commodity Exchange as the first domestic futures option.
20 17, 19, white sugar options are listed and traded in Zhengzhou Commodity Exchange.
On September 25th, 20 18, copper options were listed and traded on Shanghai Futures Exchange.
Since 20 19, the domestic option market has developed rapidly. The equity category has expanded the options of 300ETF in Shanghai Stock Exchange, 300ETF in Shenzhen Stock Exchange and CICC 300 stock index. More than ten varieties of corn, cotton and gold have been listed in commodity options.