What factors does thinkorswim consider when determining the theoretical option price for cryptocurrencies?
João Pedro Gomes de SouzaDec 26, 2021 · 3 years ago3 answers
When determining the theoretical option price for cryptocurrencies, what factors does thinkorswim take into consideration?
3 answers
- Dec 26, 2021 · 3 years agoWhen determining the theoretical option price for cryptocurrencies, thinkorswim considers several factors. These include the current price of the underlying cryptocurrency, the strike price of the option, the time remaining until expiration, the volatility of the cryptocurrency market, and the risk-free interest rate. By taking these factors into account, thinkorswim aims to provide an accurate estimate of the option price based on the market conditions.
- Dec 26, 2021 · 3 years agoThe theoretical option price for cryptocurrencies on thinkorswim is determined by considering various factors. These factors include the current market price of the cryptocurrency, the implied volatility of the cryptocurrency, the time to expiration, the risk-free interest rate, and the dividend yield (if applicable). By analyzing these factors, thinkorswim calculates the theoretical option price, which serves as a benchmark for the actual market price of the option.
- Dec 26, 2021 · 3 years agoWhen determining the theoretical option price for cryptocurrencies, thinkorswim takes into account factors such as the current market price of the cryptocurrency, the strike price of the option, the time to expiration, the volatility of the cryptocurrency market, and the risk-free interest rate. These factors are used to calculate the expected value of the option, which is then used to determine the theoretical option price. It's important to note that the theoretical option price may differ from the actual market price due to various market factors and investor sentiment.
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