Options and Other Derivatives

8 min readarticleIncludes quiz · 3 questions

Options give the right, not the obligation, to buy (call) or sell (put) Bitcoin at a set price by a date. They can hedge risk or generate income but are complex.

Simple definitions:

  • Call: Right to buy.
  • Put: Right to sell.
  • Premium: Price paid for the option.
  • Strike: Agreed price.
  • Expiry: Last day the option is valid.

Test Your Knowledge

This lesson includes a 3-question quiz (passing score: 75%).

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