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What is the difference between exercise price and strike price in the context of cryptocurrency options?

avatarOgheneDec 25, 2021 · 3 years ago3 answers

Can you explain the distinction between exercise price and strike price when it comes to cryptocurrency options? I'm trying to understand how these two terms differ and how they are relevant in the context of cryptocurrency options trading.

What is the difference between exercise price and strike price in the context of cryptocurrency options?

3 answers

  • avatarDec 25, 2021 · 3 years ago
    The exercise price and strike price are essentially the same thing. They both refer to the price at which the option holder can buy or sell the underlying cryptocurrency. So, in the context of cryptocurrency options, exercise price and strike price are interchangeable terms. It's just a matter of preference which term you use.
  • avatarDec 25, 2021 · 3 years ago
    When it comes to cryptocurrency options, the exercise price and strike price are used interchangeably. They both represent the predetermined price at which the option holder can buy or sell the underlying cryptocurrency. So, whether you call it exercise price or strike price, it refers to the same concept in the context of cryptocurrency options trading.
  • avatarDec 25, 2021 · 3 years ago
    In the context of cryptocurrency options, exercise price and strike price are used interchangeably. They both represent the price at which the option holder can buy or sell the underlying cryptocurrency. So, whether you refer to it as exercise price or strike price, it's essentially the same thing. Just remember that the exercise price/strike price is a crucial factor in determining the profitability of an options contract.