Optionsmarknadens

Optionsmarknadens, literally the options market, refers to the market for trading options contracts, a class of financial derivatives that give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying asset at a specified strike price before or at expiration. The underlying assets include equities, stock indices, currencies, commodities, and other financial instruments. The market consists of organized venues where standardized options are traded as well as over-the-counter arrangements for customized contracts.

Exchange-traded options are standardized in terms of contract size, strike intervals, expiration dates, and settlement rules, and are cleared through a central counterparty, which mitigates credit risk. OTC options are privately negotiated and can be tailored to specific needs, but carry higher credit and liquidity risk and often require collateral. Prices are posted by buyers and sellers, and market makers provide liquidity in many markets.

Pricing of options depends on the price of the underlying asset, the strike price, time to expiration, volatility, interest rates, and expected dividends. The Black-Scholes and binomial models are widely used as theoretical benchmarks, though real prices reflect supply and demand dynamics, liquidity, and abrupt market moves.

Options marknadens serves several purposes: they enable hedging against price risk, allow speculation on future movements, and contribute to price discovery and market liquidity. They are subject to regulation by national authorities and are typically traded on regulated exchanges with standard clearing and reporting requirements.