In Crypto Options, How Is the Premium Typically Quoted and Settled? ▴ Learn

In Crypto Options, How Is the Premium Typically Quoted and Settled?

The premium for crypto options is typically quoted in terms of the underlying cryptocurrency (e.g. BTC or ETH) or a stablecoin like USDC, depending on the exchange.

Settlement is often done in cash (or the underlying asset's value in a stablecoin) rather than physical delivery of the crypto. The premium itself is paid upfront by the buyer to the seller upon contract initiation.

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