Crypto Trading Binance Options 2

Question 1

What type of options does Binance primarily offer on its main options platform?

Accepted Answer

European-style options

Answer

Binance Options are European-style, meaning they can only be exercised at expiration.

Question 2

On Binance, what does buying a call option give the holder the right to do?

Accepted Answer

Buy the underlying at the strike price

Answer

A call option gives the holder the right to buy the underlying at the strike price.

Question 3

What is the maximum loss for a buyer of a Binance option?

Accepted Answer

The premium paid

Answer

An option buyer can lose at most the premium they paid.

Question 4

Which Greek measures an option's sensitivity to changes in the underlying asset's price?

Accepted Answer

Delta

Answer

Delta measures how much an option's price changes relative to the underlying price.

Question 5

What happens to a Binance European option that expires out-of-the-money?

Accepted Answer

It expires worthless

Answer

An out-of-the-money option expires worthless and the buyer loses the premium.

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