What Is the Relationship between Strike Price and Option Premium? ⎊ Path

What Is the Relationship between Strike Price and Option Premium?

Generally, for call options, a lower strike price results in a higher option premium, as it offers a greater chance of being ITM and a higher intrinsic value. For put options, a higher strike price results in a higher premium.

The strike price is a primary determinant of the option's intrinsic value component.

What Is the Difference between a Covered Put and a Naked Put?

What Is the Concept of “Put-Call Parity”?

What Is the Relationship between Strike Price and the Delta of a Call?

What Is the ‘Put-Call Parity’ Theorem in Options Pricing?

How Is a ‘Synthetic Long Call’ Constructed Using the Underlying Asset and a Put Option?

Explain the Concept of ‘In-the-Money’ for Both Call and Put Options

How Does the Strike Price Choice Affect the Risk/reward of a Covered Call?

What Is a Series of Options?

Glossar

Strike Price

Reference ⎊ The Strike Price is the predetermined reference level set at the contract's inception against which the underlying crypto asset's spot price is compared at expiration or exercise.