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At what point does an option on a digital currency expire?

avatarLevi EichelbergDec 26, 2021 · 3 years ago3 answers

Can you explain the expiration of options on digital currencies? When does an option on a digital currency expire and what happens after it expires? How does the expiration date affect the value and trading of digital currency options?

At what point does an option on a digital currency expire?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    When it comes to options on digital currencies, the expiration date is a crucial factor. An option on a digital currency typically expires at a specific date and time, after which it becomes worthless. The expiration date is predetermined and specified in the option contract. Once the option expires, the holder no longer has the right to buy or sell the underlying digital currency at the strike price. It's important to keep track of the expiration date and plan your trading strategy accordingly.
  • avatarDec 26, 2021 · 3 years ago
    Options on digital currencies have a fixed expiration date, which is usually stated in the option contract. Once the expiration date is reached, the option becomes invalid and cannot be exercised anymore. This means that if you hold an option on a digital currency and it expires, you will not be able to buy or sell the underlying asset at the predetermined strike price. It's important to be aware of the expiration date and manage your options positions accordingly.
  • avatarDec 26, 2021 · 3 years ago
    When it comes to options on digital currencies, the expiration date is a critical aspect to consider. At BYDFi, an option on a digital currency typically expires at the end of the specified expiration date, which is stated in the option contract. After the expiration, the option becomes worthless and the holder loses the right to buy or sell the underlying digital currency at the strike price. It's essential to be aware of the expiration date and plan your trading strategy accordingly to maximize your potential gains.