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Glossary
erko optionA ERKO option gives the holder the right, but not the obligation, to buy or sell the
underlying asset (i.e. BTC) at a specific date (expiry) for a specific price (strike). The value of the option is zero if either the barrier-up or barrier-down is breached at expiry.
underlying assetAn options contract always refers to the spot price of an underlying asset. In the case of our options contract, the underlying asset is BTC. The value of the option is derived (hence the name "derivative") from the spot price of the underlying asset.
strikeThe strike price is the BTCUSD rate at which the call option holder has the right to buy BTC from the vault contract.
out-of-the-moneyIf the price of the underlying asset is below the strike price, the option is "out-of-the-money" (OTM). The option does not hold any value at expiry.
in-the-moneyIf the price of the underlying asset is above the strike price the option "is in-the-money" (ITM). The option holds value at expiry.
premiumThe premium is the amount the option buyer pays the option seller (aka option writer) for the option contract. In the
options contract the premium is also referred to as options-price-in-usd.
expiryThe expiry date is the UNIX timestamp (in milliseconds) at which the value of the options contract is determined.
pnlThe pnl or "profit and loss" refers to the value of the options contract at
expiry.Last modified 26d ago