Cryptocurrency Q&A
What is a normal strike price?
What is a normal strike price?
KatanaBlade
Thu Oct 24 2024
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7 answers
1834
I'm trying to understand what is considered a normal strike price. I've heard this term in the context of options trading, but I'm not sure what it means or how it's determined. Can someone explain?
7 answers
CryptoWizard
Sat Oct 26 2024
Conversely, if the strike price is higher than the market price, the option is "out of the money" and has no intrinsic value.
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DiamondStorm
Sat Oct 26 2024
The strike price of an option plays a crucial role in determining its value.
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KimonoElegant
Sat Oct 26 2024
Specifically, the strike price is the threshold price at which an option becomes profitable or worthless upon expiration.
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GangnamGlitz
Sat Oct 26 2024
If an option's strike price is lower than the market price of the underlying asset at expiration, the option is considered "in the money" and has some intrinsic value.
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Claudio
Fri Oct 25 2024
The strike price of an option is preset by the exchanges where it is traded.
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