Players can either bet that the Hang Seng Index will go up or down. If you think the index will go up, then you buy a “”call”” option. If you think the index will go down, then you buy a “”put”” option. Options are contracts that give the holder the right to buy or sell an asset at a certain price on or before a certain date. In our case, the asset is the Hang Seng Index and the price is determined by where the index is trading at when the contract expires. The expiration date is important because it’s when your bet ends and you find out if you’ve won or lost. Options contracts typically expire in one month, but there are also shorter-term options with expirations as short as one day.
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