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

3 answers

• Dec 26, 2021 · 3 years ago
  In the context of cryptocurrency options, the strike price refers to the predetermined price at which the underlying cryptocurrency can be bought or sold when exercising the option. On the other hand, the exercise price is the price at which the option holder can buy or sell the underlying cryptocurrency. Essentially, the strike price is set when the option is created, while the exercise price is the price at which the option holder decides to exercise their right to buy or sell the underlying asset. Both strike price and exercise price play a crucial role in determining the profitability of options trading in the cryptocurrency market.
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• Dec 26, 2021 · 3 years ago
  Alright, let me break it down for you. The strike price is like the target price that you set for your options contract. It's the price at which you hope the cryptocurrency will reach or exceed so that you can make a profit. On the other hand, the exercise price is the price at which you can actually buy or sell the cryptocurrency if you decide to exercise your options contract. So, the strike price is more of a target, while the exercise price is the actual price at which you take action. Got it?
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• Dec 26, 2021 · 3 years ago
  When it comes to cryptocurrency options, the strike price is the price at which the option contract can be executed. It's the price that determines whether the option will be profitable or not. On the other hand, the exercise price is the price at which the option holder can buy or sell the underlying cryptocurrency. In other words, the strike price is the price at which the option contract is set, while the exercise price is the price at which the option holder can actually exercise their right to buy or sell the cryptocurrency. Understanding the difference between strike price and exercise price is essential for successful options trading in the cryptocurrency market.
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