# Can an Option Trade at a Premium of Zero before Expiration? ▴ Learn

**Published:** 2025-11-22
**Categories:** Learn

---

## Can an Option Trade at a Premium of Zero before Expiration?

Theoretically, an option should not trade at a premium of zero before expiration because it always retains some time value, even if minimal. However, a far OTM option may trade for a price so low that it is rounded to zero, or due to low liquidity, no bid exists.

Does the Style of the Option Affect the Initial Premium Calculation?

What Is the Risk a Miner Retains Even after Paying a Pool Fee?

Is It Possible for a Single Entity to Control the Majority of Staked Assets in a Large PoS Network?

What Is the Risk of a Hash Collision in a Signed Contract?

## Discover More

- 
### [What Is the Maximum Hashrate Percentage a Miner Can Have before Selfish Mining Becomes Consistently Profitable?](https://crypto.greeks.live/learn/what-is-the-maximum-hashrate-percentage-a-miner-can-have-before-selfish-mining-becomes-consistently-profitable/)
![Sharp angular planes of slate gray acrylic intersect with translucent cyan glass and a planar golden element suggesting divergent price action pathways. This assemblage embodies the complex topology of non-linear payoff structures in exotic options, particularly within decentralized exchange perpetual swaps. The central pivot point signifies a reference rate mechanism where liquidity providers manage counterparty risk exposure. A slender metallic rod terminating in a smooth sphere projects outward, symbolizing realized volatility measurement against predicted stochastic drift inherent in high-frequency arbitrage loops. The structure implies a delicate balance, mirroring delta hedging requirements across layered synthetic asset constructs, essential for maintaining systemic stability amidst latent blockchain settlement finality uncertainties. The aesthetic captures algorithmic trading precision meeting underlying derivative mechanism design.](https://crypto.greeks.live/wp-content/uploads/2025/10/Abstract-Geometric-Depiction-of-Asymmetric-Volatility-Surface-Hedging-Strategies-in-Decentralized-Finance.jpg)

Selfish mining is generally considered consistently profitable when a miner controls approximately 33% of the total network hashrate.

- 
### [Can a Physically-Settled Futures Contract Be Closed out before Expiration?](https://crypto.greeks.live/learn/can-a-physically-settled-futures-contract-be-closed-out-before-expiration/)
![Sharp, intersecting planes of clear glass converge near a pyramidal refractive structure, juxtaposed against a monolithic, muted cyan disc, set against absolute blackness. This abstract assembly symbolizes the complex topological mapping inherent in non-linear option payoff structures, specifically illustrating implied volatility surfaces and the dynamics of theta decay across various strike prices in crypto options. The hard angles suggest structural rigidity in smart contract execution while the translucent material hints at transparency in underlying asset movements. Understanding the arbitrage mechanics across perpetual futures and standard contract expiration requires visualizing these multidimensional geometric relationships essential for calculating the Greeks, such as vega exposure relative to underlying asset volatility in high-frequency decentralized exchange environments utilizing synthetic asset wrappers and collateralized debt positions.](https://crypto.greeks.live/wp-content/uploads/2025/10/Crystalline-Geometric-Abstraction-Illustrating-Convexity-Skew-in-Decentralized-Finance-Derivatives-Structures.jpg)

Yes, by taking an opposite and equal position (offsetting) before the last trading day.

- 
### [What Is the Relationship between an Option’s Premium and Its Extrinsic (Time) Value?](https://crypto.greeks.live/learn/what-is-the-relationship-between-an-options-premium-and-its-extrinsic-time-value/)
![The abstract composition features intersecting beige and translucent cyan geometric planes overlaying dark circular background forms suggestive of planetary accretion disks or complex data schemas. This visual metaphor represents the layered architecture of DeFi perpetual swaps and tailored exotic derivatives structures. The central nexus signifies the convergence point for on-chain settlement mechanisms and smart contract logic governing synthetic asset creation. Keywords integrating this concept include order book depth visualization black-scholes Greeks calibration Automated Market Maker liquidity pools volatility skew analysis and counterparty risk mitigation in decentralized margin financing protocols establishing firm theoretical underpinnings.](https://crypto.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Primitive-Architectures-Analyzing-Implied-Volatility-Surface-Structures.jpg)

Premium = Intrinsic Value + Extrinsic Value. Extrinsic value is the portion due to time remaining and implied volatility.

- 
### [Can a Zero-Fee Transaction Still Be Confirmed on a Congested Network?](https://crypto.greeks.live/learn/can-a-zero-fee-transaction-still-be-confirmed-on-a-congested-network/)
![The polished, high-contrast metallic structure suggests a centralized nexus point for decentralized finance governance, resembling an advanced hardware wallet interface or a secure vault mechanism. The central blue optical sensor evokes cryptographic key generation or the monitoring of real time order flow for synthetic asset settlement. This visualization represents the opaque yet deterministic nature of smart contract execution in decentralized autonomous organizations DAOs. Key concepts involve immutable ledger verification, algorithmic arbitrage execution, zero knowledge proof finality, collateralized debt position monitoring, and exotic options payoff profiles under extreme volatility regimes within DeFi primitives. The form factor implies robust cold storage security protocol implementation.](https://crypto.greeks.live/wp-content/uploads/2025/10/Bespoke-Digital-Asset-Security-Module-Encapsulation-Monitoring-Ocular-Aperture-Configuration.jpg)

Highly unlikely, as miners prioritize high-fee transactions during congestion, but technically possible if a miner chooses to include it.

- 
### [How Does Implied Volatility (IV) Affect the Size of the Option Premium?](https://crypto.greeks.live/learn/how-does-implied-volatility-iv-affect-the-size-of-the-option-premium/)
![A macro perspective captures high-gloss clock hands intersecting over layered cyan and deep indigo structural elements against absolute black, symbolizing temporal financial mechanisms. This visual setup evokes the delicate balance within derivative pricing models like Black-Scholes adapted for volatile crypto assets. The precise alignment represents instantaneous trade execution in high-frequency market making or the reliable settlement of futures contracts. Noteworthy are the smooth, highly reflective surfaces suggesting minimized slippage in decentralized exchange liquidity pools. The inherent geometry parallels the structure of complex payoff diagrams for exotic options or the continuous nature of perpetual futures funding rate mechanisms across various digital asset protocols. Key indicators include charting convergence, strike price representation, and underlying asset correlation assessment in real-time settlement environments.](https://crypto.greeks.live/wp-content/uploads/2025/10/Precision-Clockwork-Mechanism-Metaphor-for-Decentralized-Finance-Volatility-and-Perpetual-Swaps-Execution.jpg)

Higher IV indicates greater expected future price swings, which increases the probability of profit, thus directly increasing the option's premium.

- 
### [How Does SafeMath Handle Division by Zero?](https://crypto.greeks.live/learn/how-does-safemath-handle-division-by-zero/)
![The visual displays two mirrored, fluidic structures bisected along a sharp diagonal plane against a deep stochastic background. This abstract representation evokes the complex interdependencies within decentralized finance DeFi options layering mechanisms. The pale teal core suggests underlying asset valuation metrics like underlying spot price movement in volatile synthetic asset pools. Black and gray contours delineate structural boundaries akin to collateralized debt positions CDP or secured borrowing envelopes. The composition hints at hedging strategies against Black Swan events affecting perpetual swap contract settlements or gamma exposure realization in high-frequency trading environments. This visualizes the inherent asymmetry of risk management when dealing with novel AMM designs and complex structured products requiring precise option Greeks monitoring for arbitrage desk stability.](https://crypto.greeks.live/wp-content/uploads/2025/10/Symmetric-Segmentation-of-Biomorphic-Cryptocurrency-Portfolio-Volatility-Metrics-Under-Extreme-Liquidation-Events.jpg)

It uses a require statement to check if the denominator is zero and reverts the transaction if it is.

- 
### [What Is the Opportunity Cost of Including a Zero-Fee Transaction in a Full Block?](https://crypto.greeks.live/learn/what-is-the-opportunity-cost-of-including-a-zero-fee-transaction-in-a-full-block/)
![This intricate metallic calibration tool rests diagonally across layered substrates featuring cyan teal, pale ivory, and slate dark gray planes suggesting tiered collateralization or ledger strata. The polished rod, featuring knurled termini and a prominent obsidian spherical node, symbolizes an active pricing oracle feeding real time market data into decentralized finance protocols. This apparatus metaphorically represents the rigorous verification required for establishing accurate strike prices or margin maintenance calls within complex automated market maker structures. Key concepts illuminated include over collateralization ratios smart contract execution integrity and the critical path analysis for achieving true settlement finality across cross chain asset transfers. It underscores the necessity of tamperproof data streams for robust decentralized derivatives markets.](https://crypto.greeks.live/wp-content/uploads/2025/10/Precision-Metrology-of-Collateralized-Debt-Position-Structure-Through-DeFi-Oracles.jpg)

The opportunity cost is the lost revenue from the highest fee-paying transaction that was excluded to accommodate the zero-fee transaction.

- 
### [How Does Theta Impact the Value of an Option as Its Expiration Date Approaches?](https://crypto.greeks.live/learn/how-does-theta-impact-the-value-of-an-option-as-its-expiration-date-approaches/)
![This high-contrast visualization depicts an angular cleavage across a spheroidal substrate exhibiting differential spectral absorption highlighting underlying structural components. The image suggests the meticulous, perhaps adversarial, intersection required for complex crypto derivative clearance, mirroring the structure of a hard fork or a contentious on chain governance vote impacting locked collateral. Dark particulate matter speckling the surfaces resembles transaction dust or residue from failed atomic swaps executed near implied strike prices in perpetual futures contracts. The bipartite division reflects the necessary separation between clearinghouse functions and underlying decentralized ledger validation essential for reliable options expiration pricing mechanisms within the DeFi ecosystem. Keywords: Atomic Swaps DeFi Options Expiration Strike Price Perpetual Futures Clearinghouse Validation Governance Vote Collateral Lock Up Digital Asset Settlement.](https://crypto.greeks.live/wp-content/uploads/2025/10/Microcosmic-Analysis-Of-Encapsulated-Digital-Asset-Futures-Settlement-Mechanism-Dynamics.jpg)

Measures time decay; Option value decreases as expiration nears; Accelerates close to expiry.

- 
### [How Does ‘Time Decay’ (Theta) Affect an Option’s Premium?](https://crypto.greeks.live/learn/how-does-time-decay-theta-affect-an-options-premium/)
![Chrome watch hands pivot over a muted teal crystal, symbolizing temporal mechanics crucial for options pricing models. This image abstractly depicts the relentless passage of time affecting derivative valuations, specifically the theta decay in synthetic structured products. The highly polished metallic components suggest precision required for algorithmic high-frequency trading execution across DEX liquidity pools. Focus centers on the subtle interplay between physical movement and on-chain settlement finality for futures contracts. Key concepts include implied volatility skew real-time adjustments, expiry mechanics for perpetual swaps, and the non-linear progression of extrinsic value dissolution in delta hedging strategies navigating volatile crypto markets.](https://crypto.greeks.live/wp-content/uploads/2025/10/Macro-Visualization-of-Precision-Time-Decay-Modeling-in-Decentralized-Derivatives-Execution.jpg)

Theta. $downarrow$ Extrinsic. $uparrow$ Decay near Expiry.

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