What are the classifications of options?

(1) According to the rights of options, there are two types of bullish options and put options:

• 1. Bullish option (Call Options) means that after the buyer of the option pays a certain amount of premium to the seller of the option, he has the right to buy a certain amount of the specific commodity specified in the option contract from the option seller at the pre-agreed price within the valid period of the option contract, but does not have the obligation to buy it. And the option seller is obliged to sell the specific commodity specified in the option contract at the price specified in the option contract at the request of the option buyer within the valid period specified in the option contract;
• 2. Put option (Put Options) means that after the buyer of the option pays a certain amount of premium to the seller of the option, he has the right to sell a certain amount of the specific commodity specified in the option contract to the option seller at the pre-agreed price within the valid period of the option contract, but does not have the obligation to sell. The option seller is obliged to buy the specific commodity specified in the option contract at the price specified in the option contract at the request of the option buyer within the valid period specified in the option contract.

(2) According to the settlement time of the option, there are two types of American option and European Style Option:

1. American option refers to an option that can be exercised at any time within the valid period specified in the option contract;

2. European Style Option refers to an option that can only be exercised on the expiration date specified in the option contract. The buyer of the option cannot exercise the right before the expiration date of the contract. After the expiration date, the contract will be automatically voided.

3. Most stock options are American options, and index options are generally European Style Options.

(3) According to the subject matter on the option contract, there are stock options, stock index options, interest rate options, commodity options, and exchange rate options.