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Are exercise price and strike price the same thing when it comes to cryptocurrencies?

avatarParth MouryaDec 26, 2021 · 3 years ago3 answers

Can exercise price and strike price be used interchangeably in the context of cryptocurrencies?

Are exercise price and strike price the same thing when it comes to cryptocurrencies?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    Yes, exercise price and strike price are essentially the same thing when it comes to cryptocurrencies. Both terms refer to the predetermined price at which a cryptocurrency option can be bought or sold. This price is agreed upon when the option contract is created and remains fixed throughout the contract period. So, whether you call it exercise price or strike price, it refers to the same concept in the cryptocurrency market.
  • avatarDec 26, 2021 · 3 years ago
    Exercise price and strike price are two different terms used in the options market, including cryptocurrencies. Exercise price refers to the price at which the option holder has the right to buy or sell the underlying asset, while strike price is the price at which the option can be exercised. In the context of cryptocurrencies, these terms can be used interchangeably as they represent the same concept of the predetermined price at which the option can be exercised.
  • avatarDec 26, 2021 · 3 years ago
    Exercise price and strike price are often used interchangeably in the world of cryptocurrencies. However, it's important to note that different platforms or exchanges may use different terminology. For example, at BYDFi, we refer to it as the exercise price, while other exchanges may use the term strike price. Regardless of the terminology used, the concept remains the same - it's the price at which an option can be exercised in the cryptocurrency market.