How does expiration of a digital currency option work?

3 answers

• Dec 19, 2021 · 3 years ago
  Sure! When a digital currency option expires, it means that the contract between the buyer and the seller is no longer valid. At expiration, the buyer has the right to exercise the option or let it expire worthless. If the buyer exercises the option, they can buy or sell the underlying digital currency at the predetermined strike price. If the buyer lets the option expire, they lose the premium paid for the option. It's important to note that the expiration date is predetermined and specified in the option contract.
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• Dec 19, 2021 · 3 years ago
  Expiration of a digital currency option is the date when the contract ends. At expiration, the option either becomes worthless or is automatically exercised, depending on the buyer's decision. If the option is in the money (the strike price is favorable), the buyer can choose to exercise the option and profit from the price difference. If the option is out of the money (the strike price is not favorable), the buyer may choose to let it expire and avoid further losses. It's crucial for traders to keep track of the expiration date and make informed decisions based on market conditions.
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• Dec 19, 2021 · 3 years ago
  When a digital currency option expires, it means that the contract between the buyer and the seller comes to an end. The buyer has the right, but not the obligation, to exercise the option before or at the expiration date. If the option is in the money, meaning the strike price is favorable, the buyer can choose to exercise the option and profit from the price difference. However, if the option is out of the money, the buyer may decide to let it expire and avoid additional losses. It's important to note that the expiration process may vary depending on the exchange or platform where the option is traded, so it's always recommended to familiarize yourself with the specific rules and procedures of the platform you are using.
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