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The price of Bitcoin continues to set a new record every day. The largest cryptocurrency with its market value, today exceeded $ 25,000 and rose to $ 25,985.
While Bitcoin broke a new record, Deribit, a leading crypto derivatives exchange, has opened two new Bitcoin options contracts with strike prices of $ 120 and $ 140K. The stock exchange recently published another $ 100,000 contract.
The expiration date of the new contracts is as follows: Contracts with a use price of $ 120,000 for September and December 2021, and a contract with a use price of $ 140,000 for December 2021 are listed.
Option contracts are derivatives that give the buyer the right to buy or sell the underlying asset at a specific price on or before a specific date. Option buyers pay a premium to obtain this right to buy or sell. A call option grants the right to buy an asset and a put option gives the right to sell.
An option contract consists of the following elements:
- Underlying asset: The asset whose price is speculated is Bitcoin here.
- Date of Expiry: The date the option will expire. After this date, the contract expires.
- Price of use: The price level at which the buyer is entitled to buy or sell the underlying asset at maturity.
- Option type: Buy or sell options
- Option price: The price or premium that the buyer pays to the seller for the right to buy or sell the asset at the exercise price on the expiration date.
