The various fees of options usually include the following:
Option Premium: The premium is the cost of purchasing an option contract, also known as the ** of an option. The premium is paid by the buyer of the option to the seller of the option, that is, by the holder of the option to the writer of the option. The amount of the premium depends on the type of option, exercise**, underlying asset**, option expiration time, and market supply and demand.
Handling Fee: When trading options, you may be required to pay a transaction fee, which is a fee charged by an exchange or broker for the execution of a trade. The exact amount of the commission will vary depending on your broker and exchange policy. The minimum option fee is 17 yuan per piece.
Margin: If you sell an option, the exchange or broker may require you to provide a certain amount of margin to ensure that you will be able to fulfill the option contract. The amount of margin depends on the nature of the options contract and the requirements of your broker.
The calculation of the option premium is usually carried out according to the following formula:
Premium = Intrinsic Value + Time Value
Intrinsic value: Intrinsic value is the current profitability of the option. In the case of an option, the intrinsic value is equal to the difference between the current market of the underlying asset and the exercise of the option (if the difference is positive). In the case of a sell option, the intrinsic value is equal to the difference between the exercise** and the current market of the underlying asset** (if the difference is positive).
Time value: Time value is the premium portion of an option and represents the option's likely future profit potential. Time value depends on a number of factors, including the expiration time of the option, the volatility of the underlying asset**, interest rates, and market sentiment.
To calculate the option premium, you can use an option pricing model, such as the black-scholes model, which takes these factors into account to estimate the option fee. Typically, the broker's trading platform will provide you with real-time option fees, and you can make decisions based on these**.
If you have any questions, please follow my homepage and leave a message, and I will answer them as soon as possible.
Newbie Mentoring Program