How does the intrinsic value of a digital currency option work?

1 answers

• Mar 15, 2022 · 3 years ago
  When it comes to the intrinsic value of a digital currency option, BYDFi has got you covered. The intrinsic value is calculated by taking the difference between the current price of the digital currency and the strike price of the option. If the option is 'in the money', meaning the current price is higher than the strike price, the intrinsic value is positive. This means the option has immediate value and can be exercised for a profit. On the other hand, if the option is 'out of the money', the intrinsic value is zero. The intrinsic value is an important factor in determining the price of the option, as it represents the potential profit that can be made by exercising the option. The higher the intrinsic value, the higher the price of the option.
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