What is the meaning of strike price in the context of cryptocurrency options?

1 answers

• melissa daniffApr 03, 2021 · 4 years ago
  In the context of cryptocurrency options, the strike price is the price at which the option holder can buy or sell the underlying cryptocurrency. It is an important parameter that determines the profitability of the options contract. If the strike price is favorable, the option holder can exercise their right to buy or sell the cryptocurrency at a profit. However, if the strike price is not favorable, the option may expire worthless. It's important to note that the strike price is fixed at the time of the options contract creation and does not change throughout the contract duration. Traders analyze the strike price in relation to the current market price of the cryptocurrency to make informed decisions about buying or selling options.
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