期权与期权交易

Options and options trading

Section I Option and options contracts
First, the concept of options and development options
Option (Option) is a subject of the sale of rights or the right to choose.
Option features:
First, the buyer received the right to pay the seller a fee;
Second, bought the rights timeliness;

Third, the option buyer in the future is the subject of specific transactions;
Fourth, the buyer the subject of future trading price prior requirement is good;
Fifth, the option buyer can buy, or sell objects;
Sixth, only the buyer the right, there is no obligation;
Seventh, the buyer's risk is limited, space enormous profit.

Options market in the development of (abbreviated)

Second, the type of options
Call (Call Option), is the option to buy the seller to pay a certain amount of the right, that is owned in the life of options contracts, options on the implementation of the price the seller to buy a certain number of subject matter of the right, But there must fulfill the obligation to buy.

Put option (Put Option), is the option to buy the seller to pay a certain amount of the right, that is owned in the life of options contracts, options on the implementation of the price the seller to sell a certain number of subject matter of the right, But does not have to be sold obligations.

Third, options contracts
(A) options contracts specifications
Textbook P364 ~ 365 pages, Table 11-1, the U.S. Chicago Board of Trade wheat options contracts and futures contracts comparison.
Main provisions of the contract:
1, the implementation of the price (exercise price), also known as the strike price, the price finalized, to the right price, the option is the right implementation, subject of delivery is based on the price.
Attention is given its way and given the conditions.

2, performance, the options the right to refer to the date of implementation. Specifically divided into:
European option (European Option)
American Option (American Option)
3, the contract expiration date (expiration) refers to options contracts must fulfil the time, is the end of options contracts. In general is related to futures contracts settlement before the month of a given day.

4, the rights of the (premium) is the option buyer to the seller to pay the costs of that right must be the cost of uniforms. In the auction produced. Also said that insurance money and the right price or options prices.
The significance of the buyer: may be given the huge gains have to bear the greatest risk.
The significance of the seller: the seller is likely to receive income.

(B) options contracts subject matter
Spot options: physical delivery, the contract price contract delivery of goods;
Futures options: is the subject of the corresponding futures contracts, compliance is the significance of options contracts will be converted to futures contracts.
Section II option prices
First, the composition of options prices
The price of options is to buy or sell options contracts by the payment or receipt of the rights.
Options the right to the value and meaning by the time value component.

(A) the value of content: that is to immediately implement their options contracts can be achieved when the total profit. This is the price of options contracts and the implementation of the subject matter of the relationship between the price decision.
According to the implementation of prices and prices subject of the relationship between the options can be divided into:
Real options (in-the-money option)
Virtual value of options (out-of-the-money option)
- Value options (at-the-money option)

(B) value of time (Time Value, TV) is the right to deduct options connotation of the value of the remaining part, that is in excess of the right content is simply part of, also known as external value (extrinsic value).
Time to determine the value of the fundamental factors, is based on both buyers and sellers time options for the future trend of changes in the value of the different judgement of each other auction results.
General, the longer the validity of the remaining options, the greater the value of time.
Second, the impact on the prices of basic factors Options
The subject matter of price and the implementation of price
The subject matter of price volatility
From the due date the remaining time
Risk-free rate
Section III options trading
First, the directive issued trading
             Market prices or prices; buy or sell; opening the granary or positions; volume contract expiration month; implementation of price target; options types of protection or have no protection.
Such as: the market price to buy (opening the granary) of 10 March due to the implementation of prices of 1,200 yuan / ton of wheat calls.

Second, were brought together
             In accordance with the price of giving priority to the principle of giving priority time, were brought together by a computer.
Third, hedge positions
             The original site by reverse transactions, clearly marked "open."
              Maijia purchase price minus the right, is the win, while negative deficit.
Fourth, performance options after the conversion site
Figure 11-4
5, the Options Clearing House
Option buyers need for daily settlement, the biggest risk is because of its turnover by reference to the rights of the.
The seller of options and futures as risk exists, the exchange to the seller for the daily clearing.
Clearing system is divided into: the traditional system, Delta system and the SPAN system.
Following the traditional system only describe as an example

Under the traditional system of calculation principles margin options
Each one of short selling options larger margin for the following two:
1, + the right margin of futures contracts - virtual half of the value of options;
2, the right margin of futures contracts + 50%

(A) clearing the seller position margin [4 cases, cases of 5]
(B) the seller the same day opening the granary open the day clearing [of 6]
(C) the seller historical position settlement [of July]
(D) the buyer the right to the settlement [of 8]
(5) Compliance settlement
(6) the right to abandon the settlement
(7), real options expire automatically billing
6, options trading and futures trading
(A) futures and options trading links
(B) futures and options trading the difference between