What is the intrinsic value of put options in the context of cryptocurrency?
ChandanaJan 04, 2023 · 3 years ago3 answers
Can you explain the concept of intrinsic value of put options in the context of cryptocurrency? How does it differ from the extrinsic value?
3 answers
- RTR 155Apr 16, 2023 · 2 years agoThe intrinsic value of a put option in the context of cryptocurrency refers to the value that the option would have if it were exercised immediately. It is calculated by taking the difference between the strike price of the put option and the current market price of the underlying cryptocurrency. If the market price is below the strike price, the put option has intrinsic value. The extrinsic value, on the other hand, represents the additional value of the option beyond its intrinsic value, and is influenced by factors such as time remaining until expiration and market volatility.
- pakaleeFeb 15, 2021 · 4 years agoThe intrinsic value of put options in cryptocurrency is the amount by which the strike price of the option is greater than the current market price of the underlying cryptocurrency. It represents the profit that could be made by exercising the option immediately. The extrinsic value, also known as time value, is the additional value of the option that is not accounted for by the intrinsic value. It is influenced by factors such as time until expiration, volatility, and interest rates.
- Mohammed EL MIMOUNIJan 06, 2021 · 5 years agoIn the context of cryptocurrency, the intrinsic value of put options is the difference between the strike price and the current market price of the underlying cryptocurrency. This value represents the potential profit that can be made by exercising the option. The extrinsic value, on the other hand, is the additional value of the option that is not based on the current market price. It takes into account factors such as time until expiration and market volatility. It's important to note that the intrinsic value of put options can change as the market price of the underlying cryptocurrency fluctuates.
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