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In Options Trading, How Does a Reliable Price Feed Affect Strike Price Calculations?

The reliable price feed provides the spot price, which is used to determine an option's moneyness relative to the fixed strike price.
Greeks.Live20.11.25

In Options Trading, How Does a Reliable Price Feed Affect Strike Price Calculations?

A reliable price feed is essential for accurately calculating the current value of the underlying asset, which is the 'spot price.' While the strike price is a fixed term set at the contract's inception, the reliable spot price is used to determine if an option is 'in-the-money' or 'out-of-the-money' at any given time and at expiration. This directly impacts the option's premium and the decision to exercise or not.

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