How Do Call and Put Options Differ in Their Payoff Structure?
A call option gives the holder the right, but not the obligation, to buy an asset at a set strike price. Its value increases when the underlying asset's price rises.
A put option gives the holder the right to sell an asset at a set strike price. Its value increases when the underlying asset's price falls.
Both are derivative contracts.
Glossar
Call and Put Options
Derivative ⎊ Cryptocurrency options, representing financial contracts derived from the value of underlying digital assets, introduce a layer of complexity beyond spot trading.
Payoff
Mechanism ⎊ Payoff, within cryptocurrency derivatives, represents the calculated financial outcome of a contract at expiration or a specified trigger event, determined by the underlying asset’s price relative to the contract’s strike price and other parameters.