How does the expiry of a cryptocurrency option affect its value?

1 answers

• BaccariNov 30, 2024 · a year ago
  The expiry of a cryptocurrency option can significantly impact its value. As the expiry date approaches, the option's value may fluctuate based on market conditions and investor sentiment. If the option is in-the-money, traders may be more inclined to exercise or sell the option before it expires, which can drive up its value. Conversely, if the option is out-of-the-money, its value may decrease as the expiry date nears, as there is less likelihood of it becoming profitable. The expiry date serves as a crucial factor in determining the value of a cryptocurrency option, as it introduces a time constraint that affects the option's supply and demand dynamics.
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