What is the intrinsic value of cryptocurrency options?
Mayo FengerDec 30, 2021 · 3 years ago1 answers
Can you explain the concept of intrinsic value in relation to cryptocurrency options? How does it differ from the extrinsic value?
1 answers
- Dec 30, 2021 · 3 years agoAs an expert in the cryptocurrency industry, I can tell you that the intrinsic value of cryptocurrency options is a crucial concept to understand. It refers to the inherent value of the option itself, which is determined by the difference between the strike price and the current price of the underlying cryptocurrency. If the option has intrinsic value, it means that it is in-the-money and can be exercised for a profit. However, it's important to consider other factors such as market volatility and time decay when evaluating the overall value of an option. Intrinsic value is just one piece of the puzzle, and it's important to take a holistic approach when making investment decisions in the cryptocurrency options market.
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