What is the impact of the call strike price on the value of a digital currency?

1 answers

• Nov 28, 2021 · 3 years ago
  In options trading, the call strike price represents the price at which the option holder has the right to buy the underlying digital currency. The call strike price can influence the value of a digital currency in several ways. Firstly, when the call strike price is set higher than the current market price, it creates a situation where the option is out of the money. This means that the option holder would not exercise the option, as it would be more expensive to buy the digital currency through the option than on the market. This can decrease the demand for the digital currency and potentially lower its value. On the other hand, when the call strike price is set lower than the current market price, it creates a situation where the option is in the money. This means that the option holder would exercise the option, as it would be cheaper to buy the digital currency through the option than on the market. This can increase the demand for the digital currency and potentially drive up its value. Therefore, the call strike price is an important factor to consider when assessing the value of a digital currency in options trading.
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