What happens to the premium when you exercise a call option in the cryptocurrency market?

5 answers

• Gayatri l ShindeApr 20, 2024 · a year ago
  When you exercise a call option in the cryptocurrency market, the premium is not refunded. The premium is the price you pay to purchase the option, and it is separate from the strike price. When you exercise the option, you are essentially buying the underlying asset at the strike price. The premium you paid is not returned to you, as it is the cost of the option itself.
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• Self BuhlJul 08, 2021 · 4 years ago
  Once you exercise a call option in the cryptocurrency market, the premium is gone. It's like buying a ticket to a concert - once you use the ticket, you can't get a refund. The premium is the price you pay for the option, and once you exercise it, you are essentially using it to buy the underlying asset at the strike price. So, the premium is not returned to you.
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• Harshitha PJul 22, 2020 · 5 years ago
  When you exercise a call option in the cryptocurrency market, the premium is not refunded. It's important to note that the premium is the price you pay for the option itself, and it is separate from the strike price. When you exercise the option, you are essentially converting it into the underlying asset at the strike price. So, the premium is not returned to you, as it is the cost of the option itself. However, the profit you make from the price difference between the strike price and the market price can outweigh the premium cost.
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• SEMateOct 26, 2022 · 3 years ago
  When you exercise a call option in the cryptocurrency market, the premium is not refunded. The premium is the cost of purchasing the option, and it is separate from the strike price. When you exercise the option, you are essentially buying the underlying asset at the strike price. The premium you paid is not returned to you, as it is the price you paid for the option itself. However, if the market price of the underlying asset is higher than the strike price, you can still make a profit by selling the asset at the higher market price.
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• RaoJun 15, 2020 · 5 years ago
  When you exercise a call option in the cryptocurrency market, the premium is not refunded. The premium is the price you pay for the option, and it is separate from the strike price. When you exercise the option, you are essentially buying the underlying asset at the strike price. The premium you paid is not returned to you, as it is the cost of the option itself. It's important to carefully consider the premium and the potential profit you can make from exercising the option before making a decision.
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