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A 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-downis breached at expiry.
An 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.
The strike price is the BTCUSD rate at which the call option holder has the right to buy BTC from the vault contract.
If 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.
If the price of the underlying asset is above the strike price the option "is in-the-money" (ITM). The option holds value at expiry.
The premium is the amount the option buyer pays the option seller (aka option writer) for the option contract. In the
optionscontract the premium is also referred to as
The expiry date is the UNIX timestamp (in milliseconds) at which the value of the options contract is determined.
The pnl or "profit and loss" refers to the value of the options contract at