This research piece seeks to provide an overview of the options available on Katana and Friktion, which are both option platforms on the Solana Blockchain.
What are options?
Options are financial instruments that are based on the value of an underlying asset. An options contract gives buyers the right to buy or sell an underlying asset at an agreed-upon price with date expiry, without the obligation to. We will discuss the types of options and style of options below.
Types of OptionsCall Options
If you buy a call option, it gives you the right to buy the underlying asset at a predetermined price known as the strike price. The profit on this trade is the market price less the strike price plus the...