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What Is the Role of the Underlying Asset in a Cryptocurrency Option Contract?

The cryptocurrency whose price movement determines the option's value and is the subject of the right to trade.
Greeks.Live02.11.25

What Is the Role of the Underlying Asset in a Cryptocurrency Option Contract?

The underlying asset is the specific cryptocurrency, such as Bitcoin or Ethereum, that the option contract gives the right to trade. Its market price movement is the primary determinant of the option's value and profitability.

All terms of the contract, including the strike price and expiration date, are tied to this specific crypto.

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