In the world of cryptocurrencies, what is an example of an option that must be exercised before it expires?

3 answers

• Genevieve HarrisonFeb 14, 2025 · 9 months ago
  Sure! One example of a cryptocurrency option that must be exercised before it expires is a European-style call option on Bitcoin. This type of option gives the holder the right to buy Bitcoin at a predetermined price (the strike price) on or before the expiration date. If the option is not exercised before it expires, it becomes worthless.
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• Flood LorentsenDec 27, 2020 · 5 years ago
  In the world of cryptocurrencies, an example of an option that must be exercised before it expires is a put option on Ethereum. With a put option, the holder has the right to sell Ethereum at a specific price (the strike price) on or before the expiration date. If the option is not exercised before it expires, the right to sell Ethereum at the strike price is lost.
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• NJSTG08Oct 09, 2023 · 2 years ago
  BYDFi, a leading cryptocurrency exchange, offers options that must be exercised before they expire. For example, they have Bitcoin call options that allow traders to buy Bitcoin at a predetermined price before the expiration date. These options provide traders with flexibility and the opportunity to profit from price movements in the cryptocurrency market.
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