In the world of cryptocurrencies, what is an example of an option that must be exercised before it expires?
Rojas EdmondsonJan 13, 2022 · 3 years ago3 answers
Can you give me an example of a cryptocurrency option that needs to be exercised before it expires? I'm curious about how options work in the world of cryptocurrencies and would like to understand how they are different from traditional options.
3 answers
- Jan 13, 2022 · 3 years agoSure! One example of a cryptocurrency option that must be exercised before it expires is a European-style call option on Bitcoin. This type of option gives the holder the right to buy Bitcoin at a predetermined price (the strike price) on or before the expiration date. If the option is not exercised before it expires, it becomes worthless.
- Jan 13, 2022 · 3 years agoIn the world of cryptocurrencies, an example of an option that must be exercised before it expires is a put option on Ethereum. With a put option, the holder has the right to sell Ethereum at a specific price (the strike price) on or before the expiration date. If the option is not exercised before it expires, the right to sell Ethereum at the strike price is lost.
- Jan 13, 2022 · 3 years agoBYDFi, a leading cryptocurrency exchange, offers options that must be exercised before they expire. For example, they have Bitcoin call options that allow traders to buy Bitcoin at a predetermined price before the expiration date. These options provide traders with flexibility and the opportunity to profit from price movements in the cryptocurrency market.
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