Stock options are derivatives that can be applied to different market conditions for risk management and leveraged investing. Investors can choose the options of either Buy (Long Position) or Sell (Short Position). Call option buyers are entitled to exercise their right at the strike price before the expiry date and the sellers have the obligation to exercise the option.

		Call Option	Put Option
Underlying Stock Price
Strike Price
Underlying stock Volatility
Time to Maturity Date
Interest Rate
Dividends

A description of a combination of stock options:

Option Types	Call & Put
Contract Size	1 board lot of the underlying shares (Some contract are exempted)
Contract Months	Spot, the following two calendar months and the following three quarter months ( The Exchange may extend the expiry month if needed )
Contract Value	Option Premium x Contract Size
Lowest Price Movement	HK$0.01 From 9th December, 2013, the lowest price movement of the 4 stock options series below are narrowed to HK$0.001: 1) Bank of China Limited 2) China Construction Bank Corporation 3) Industrial and Commercial Bank of China Limited 4) Agricultural Bank of China Limited
Trading Period	9:30 am to 12 pm & 1 pm to 4 pm
Expiry Date	The second to last business day of the contract month
Exercise in American Style	Options can be exercised at any time before 6:45 p.m. on any business day up to and including the last trading day
Exercise Fee	HK$2.00
Settlement	Settlement period as below: T+1 (Full payment of option premium) Or T+2 (Stock transfer after exercising the option)
Transaction Fees (HKEX )	Tier 1: HK$3.00 Tier 2: HK$1.00 Tier 3: HK$0.50
Brokerage Commission	Negotiable

All information contained herein is for reference only. Please access below website link for Margin Rates for Options Contracts and Client Margin Estimate Reference Table:
https://www.hkex.com.hk/eng/market/rm/rm_dcrm/riskdata/margin_seoch/somargin.htm

If there is any inconsistency and ambiguity between the Chinese and English versions, the English version shall prevail.