There are several types of stock index options
A stock index option is a financial derivative instrument whose value is linked to an index. According to different classification criteria, stock index options can be divided into the following types:
1.Classification according to the underlying assets
Depending on the underlying asset, stock index options can be divided into index options and index spot options. Index options are options with the index contract as the underlying asset, while index spot options are options with the index cash contract as the underlying asset.
2.Classification according to the method of exercise
According to the different exercise methods, stock index options can be divided into European-style options and American-style options. European-style options can only be exercised on the expiration date, while American-style options can be exercised at or before the expiration date.
3.Classified according to the trading venue
Depending on the trading venue, stock index options can be divided into on-exchange options and over-the-counter options. An on-exchange option is an option that is listed and traded on an exchange, while an over-the-counter option is an option that is traded outside of an exchange.
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Share daily. 4.Categorized according to contract type
Depending on the type of contract, stock index options can be divided into call options and put options. A call option is the right to give the holder the right to buy an asset at a fixed rate at a specific date in the future or at any time before that date. A put option is the right to give the holder the right to fix the underlying asset at a specific date in the future or at any time before that date.
5.Categorized according to the underlying index
Depending on the underlying index, stock index options can be divided into single-market options and cross-market options. A single-market option is an option with a single index as the underlying asset, while a cross-market option is an option with two or more indices as the underlying asset.
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Share daily. In short, there are many types of stock index options, and investors can choose the right stock index options products according to their needs and preferences.