the stock option
Stock option refers to the right of the buyer to buy or sell a certain number of related stocks at the agreed price after paying the option fee and before the expiration date stipulated in the contract. It is one of many ways to motivate employees and belongs to the category of long-term motivation.
Stock index option
Stock index option, also called index option, is an option contract with stock index as the exercise variety. Compared with other options, stock index options have the characteristics of low risk (the biggest loss is premium) and high yield (the futures price difference after exercise).
Interest rate option
Interest rate options are options linked to interest rate changes, and are settled in cash or interest rate-related contracts (such as interest rate futures, interest rate forwards or government bonds) at maturity. The earliest interest rate option traded in the OTC market is the interest rate cap option introduced by 1985. At that time, banks issued floating interest rate bills to the market and needed financial instruments to avoid interest rate risks. Interest rate option refers to the right of the buyer to buy or sell interest rate instruments with a certain denomination at a certain interest rate (price) within the validity period or expiration date of the contract after paying the option fee. Interest rate option contracts usually take interest rate instruments such as short-term, medium-term and long-term government bonds, Eurodollar bonds and negotiable certificates of deposit with large denominations as the subject matter.
commodity option
As an important part of the futures market, commodity options is one of the most dynamic risk management tools in the current capital market. Commodity options refers to options with physical objects, such as wheat and soybean in agricultural products and copper in metals. Commodity options is a good financial tool for commodity risk avoidance and management. It is the right to buy and sell on the trading day stipulated in the contract.