Cryptocurrency Q&A What happens if an index option expires in-the-money?

What happens if an index option expires in-the-money?

ShintoSanctum ShintoSanctum Sun Nov 24 2024 | 6 answers 1238
I'm wondering about the outcome when an index option expires with a value that's in-the-money. What are the implications or the process that follows such an event? What happens if an index option expires in-the-money?

6 answers

Tommaso Tommaso Mon Nov 25 2024
Conversely, out-of-the-money options do not have intrinsic value and thus expire worthless.

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CryptoAlly CryptoAlly Mon Nov 25 2024
Options expiration triggers specific actions depending on their status.

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MountFujiView MountFujiView Mon Nov 25 2024
Holders of these options incur a loss equivalent to the premium they paid initially.

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GyeongjuGlorious GyeongjuGlorious Mon Nov 25 2024
In-the-money options, which have intrinsic value, are usually exercised automatically upon expiration.

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Tommaso Tommaso Mon Nov 25 2024
This automatic exercise leads to a transaction involving the purchase or sale of the underlying asset.

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