What is the meaning of exercise price in the context of cryptocurrency options?

3 answers

• Fabrizio DainelliDec 12, 2021 · 4 years ago
  The exercise price, also known as the strike price, is the predetermined price at which the holder of a cryptocurrency option can buy or sell the underlying asset. It is the price at which the option can be exercised or executed. For call options, the exercise price is the price at which the holder can buy the underlying asset, while for put options, it is the price at which the holder can sell the underlying asset. The exercise price is an important factor in determining the profitability of an option, as it affects the potential profit or loss that can be made from exercising the option.
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• Abdelbasset HennaAug 24, 2022 · 3 years ago
  Exercise price? It's basically the price at which you can buy or sell the cryptocurrency in an options contract. So, if you have a call option with an exercise price of $10, you have the right to buy the cryptocurrency at $10, regardless of its current market price. And if you have a put option with an exercise price of $10, you have the right to sell the cryptocurrency at $10, again, regardless of its current market price. It's like having a guaranteed price for buying or selling the crypto. Pretty cool, right?
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• Little LakeFeb 28, 2025 · a year ago
  Exercise price, also known as strike price, is the price at which you can buy or sell the cryptocurrency in an options contract. It's like the agreed-upon price between the buyer and the seller. Let's say you have a call option with an exercise price of $10. If the current market price of the cryptocurrency is higher than $10, you can exercise the option and buy the crypto at $10, making a profit. But if the market price is lower than $10, you wouldn't exercise the option because you can buy the crypto at a lower price on the market. So, the exercise price is an important factor in deciding whether it's profitable to exercise the option or not.
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