Option contract is the development of futures contract. The difference between an option contract and a futures contract is that the buyer has the right but no obligation to perform the contract.
Option contract refers to the standardized contract formulated by the exchange, which stipulates that the buyer has the right to buy or sell relevant futures contracts at a pre-agreed price within the validity period stipulated in the contract. The so-called standardized contract means that all the contract terms are agreed in advance, with universality and unity, except that the price of the option is formed through open bidding in the market.
The contents of the option contract include: contract name, trading unit, quotation unit, minimum fluctuation price, maximum fluctuation limit of daily price, execution price, execution price range, contract month, trading time, last trading day, contract expiration date, transaction cost, trading code and listed exchange.
Option contract has three main elements: royalty, exercise price and contract expiration date.