Rate Of ReturnContract elements: include expiration date, expiration month, settlement method, strike price, contract unit, etc.
Contract pricing: consists of intrinsic value and time value. Factors affecting option value mainly include stock price, strike price, volatility, remaining term, risk-free interest rate, dividend yield, etc.
Contract classification: If exercised immediately, making money means in-the-money, breaking even means at-the-money, and losing money means out-of-the-money. —《A 3-Hour Crash Course in Options》
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