#内容挖矿 #CareerFinance Q&A on Options (1)

Q: What are the two main types of Options Contracts?
A: The two main types of Options Contracts are:
Call Options: Give the holder the right to buy the underlying asset.
Put Options: Give the holder the right to sell the underlying asset. Each type serves different market expectations and trading strategies.

Q: How do 'Strike Price' and 'Expiration Date' define an Options Contract?
A: The 'Strike Price' is the predetermined price at which the holder of the option can buy or sell the underlying asset. The 'Expiration Date' is the last date by which the holder must exercise their option. Together, they define the terms of the contract and significantly influence the option's value and risk.

Q: What is the concept of 'Premium' in Options Contracts?
A: The 'Premium' is the price paid by the buyer to the seller to acquire the rights granted by the option. It's determined by various factors including the underlying asset's price, strike price, expiration date, volatility, and interest rates. The premium is the maximum loss the buyer can incur, while it represents potential income for the seller.