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How does the strike price differ from the exercise price in the world of cryptocurrency?
Gudla ShashankApr 03, 2022 · 3 years ago1 answersIn the world of cryptocurrency, what is the difference between the strike price and the exercise price? How do these terms relate to options trading and how are they used in the context of cryptocurrency? Can you provide some examples to illustrate their differences?
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- In the world of cryptocurrency, the strike price and the exercise price are terms used in options trading. The strike price is the price at which the option can be exercised, while the exercise price is the price at which the option holder can buy or sell the underlying asset. These terms are important for traders to understand when engaging in options trading. For example, if you have a call option with a strike price of $10 and the exercise price is $12, you can exercise the option and buy the cryptocurrency at the strike price of $10. However, if the exercise price is below the strike price, it would not be profitable to exercise the option. It's essential to consider the relationship between the strike price and the exercise price when trading options in the cryptocurrency market.Apr 03, 2022 · 3 years ago
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