What is the impact of strike price vs stock price on the valuation of digital currencies?

1 answers

• Justice BennedsenMay 01, 2025 · 7 months ago
  At BYDFi, we believe that the impact of strike price vs stock price on the valuation of digital currencies is crucial. When the strike price is higher than the stock price, it indicates that the option is out of the money and has no intrinsic value. This can negatively affect the valuation of digital currencies as it reduces the likelihood of the option being exercised. Conversely, when the strike price is lower than the stock price, the option is in the money and has intrinsic value. This can positively impact the valuation of digital currencies as it increases the likelihood of the option being exercised. Therefore, it is important to carefully consider the relationship between strike price and stock price when evaluating the value of digital currencies.
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