What factors influence the calculation of the intrinsic value formula for put options in the world of cryptocurrency?

1 answers

• Apr 30, 2022 · 3 years ago
  When it comes to calculating the intrinsic value formula for put options in the cryptocurrency market, there are several factors to consider. The current price of the underlying cryptocurrency is the primary factor. If the price is lower than the strike price, the option has intrinsic value. The time remaining until expiration also plays a role. The longer the time, the higher the chance of the cryptocurrency's price dropping below the strike price, increasing the option's intrinsic value. Market volatility, interest rates, and the implied volatility of the cryptocurrency are additional factors that impact the calculation of the intrinsic value formula.
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