How can I determine the intrinsic value of an option for a specific digital currency?

1 answers

• Dec 17, 2021 · 3 years ago
  Determining the intrinsic value of an option for a specific digital currency is an important step in option trading. To calculate the intrinsic value, you need to consider the current price of the digital currency and the strike price of the option. If the strike price is lower than the current price, the option is in-the-money and has intrinsic value. The difference between the current price and the strike price represents the intrinsic value. However, it's important to note that the intrinsic value only applies to in-the-money options. Out-of-the-money options have no intrinsic value. By understanding and calculating the intrinsic value, you can make more informed decisions when trading options on digital currencies.
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