What is the exercise price in cryptocurrency options?

1 answers

• Manuele PasiniMay 10, 2023 · 2 years ago
  The exercise price in cryptocurrency options refers to the price at which the option holder can buy or sell the underlying cryptocurrency. It is a predetermined price that is set when the option contract is created. The exercise price plays a significant role in determining the profitability of the option. If the market price of the cryptocurrency is higher than the exercise price, the option is in-the-money and the holder can exercise the option to buy or sell the cryptocurrency at a profit. Conversely, if the market price is lower than the exercise price, the option is out-of-the-money and it is generally not exercised. The exercise price is an important consideration for traders as it affects the potential profit or loss of the option trade.
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