Option transaction - Opushon Torihiki (English name) option transaction

Japanese: オプション取引 - おぷしょんとりひき（英語表記）option transaction

A transaction in which the right to buy or sell a specific commodity such as stocks, bonds, or currency at a predetermined price at a certain time (or during a certain period) in the future is bought or sold. The right to buy is called a call option, and the right to sell is called a put option. The buyer of the option pays the option fee (premium) to the seller. By exercising the option, the buyer obtains (delivers) the commodity at the exercise price, and the party whose option is exercised is obligated to fulfill it. An option that can only be exercised on the maturity date is called a "European type," while an option that can be exercised at any time before the maturity date is called an "American type." If the option is not exercised or traded by the maturity date, the right will expire. The buyer of the option has an infinite opportunity to make a profit as long as the option fee is paid, but cannot suffer any further losses. Conversely, the seller bears infinite risk in exchange for receiving the option fee. Advantages include (1) limiting the risk associated with price fluctuations while still leaving the opportunity to make a profit, and (2) enabling various investment strategies by combining calls, puts, and the underlying securities.

(Mitsuru Yoshikawa, Managing Director, Daiwa Institute of Research Ltd. / 2007)

Source : "Chiezo" published by Asahi Shimbun Publications Co., Ltd. About Chiezo

Japanese:

株式・債券・通貨等特定の商品を、将来の一定時点(または一定期間中)にあらかじめ決められた価格で買う権利または売る権利を売買する取引。買う権利をコール・オプション、売る権利をプット・オプションと呼ぶ。オプションの買い手は、売り手に対してオプション料(プレミアム)を支払う。買い手は権利行使により、権利行使価格で商品を入手し(引き渡し)、オプションを行使された側はそれを履行する義務を負う。オプションの満期日にのみ権利行使が認められるオプションを「ヨーロピアン・タイプ」、満期日前であれば常に権利行使が可能なオプションを「アメリカン・タイプ」という。満期日までに権利行使及び反対売買のいずれも行わなかった場合、権利は消滅する。オプションの買い手は、オプション料さえ支払えば無限に利益を得る機会がある一方で、それ以上の損失を被ることはない。逆に売り手は、オプション料を受け取る代わりに無限のリスクを負う。(1)価格変動に伴うリスクを限定しつつ、利益を得るチャンスも残せる、(2)コール、プット及び原証券の組み合わせで様々な投資戦略が可能となる等の利点がある。

(吉川満（株）大和総研常務理事／ 2007年)

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