Cryptocurrency Q&A
Which options become zero on expiry?
Which options become zero on expiry?
CryptoKnight
Fri May 17 2024
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5 answers
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Could you please clarify the context of this question? It seems to be referencing a specific scenario or investment product, but without further information, it's difficult to provide an accurate description. Could you elaborate on the options you're referring to? Are they related to a financial instrument, such as a futures contract or an option? Or are they perhaps pertaining to a cryptocurrency or blockchain-based application? With more details, I can better simulate the tone of a questioner and craft a description that addresses your inquiry.
5 answers
WindRider
Sun May 19 2024
In contrast, in-the-money (ITM) options retain a positive option premium even as expiry approaches. This is due to the existence of intrinsic value, which represents the difference between the strike price and the current market price of the underlying asset.
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ZenMind
Sun May 19 2024
BTCC, a UK-based cryptocurrency exchange, offers a comprehensive range of services in the field of digital assets. Among its offerings are spot trading, which allows users to buy and sell cryptocurrencies at current market prices. Additionally, BTCC provides futures trading, enabling investors to speculate on the future prices of cryptocurrencies.
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Maria
Sun May 19 2024
As expiry approaches, the time value of all three options eventually tends towards zero. This trend is inevitable as the expiration date nears, regardless of the type of option involved.
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MountFujiMysticalView
Sun May 19 2024
In the case of out-of-the-money (OTM) options, the option premium diminishes to zero as the expiry date approaches. This is because OTM options have no intrinsic value and their value solely depends on the time remaining before expiration.
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Alessandra
Sun May 19 2024
Similarly, at-the-money (ATM) options also exhibit a zero value as expiry nears. ATM options are those that are priced exactly at the strike price, and they do not possess any inherent worth apart from the time value that decreases as the expiration date comes closer.
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