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What Is the Risk to the DAO If the Token Price Exceeds the Call Option’s Strike Price?

The DAO is obligated to sell its tokens at the lower strike price, capping its profit and missing out on the higher market price appreciation.
Greeks.Live15.11.25

What Is the Risk to the DAO If the Token Price Exceeds the Call Option’s Strike Price?

If the native token price rises above the call option's strike price, the buyer of the call option will likely exercise it. This means the DAO treasury will be obligated to sell its underlying tokens at the lower strike price, missing out on the higher market price.

The treasury keeps the initial premium, but its potential profit is capped at the strike price plus the premium received.

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