Call Options

P2P ERC20 call options written, bought, settled on the blockchain.

A call option gives the holder or buyer of the option, the right, but not the obligation, to buy a specific amount of an underlying asset (in this case, ERC20 tokens) at a predetermined price (strike price) within a specified period (expiration date).

A call option allows the holder to benefit from potential token price increases. If the market price of the token is above the strike price on expiry, the holder can exercise the option, buying tokens at the agreed-upon lower price and then sell them at the higher market price, making a profit.

This settlement process is synthesized in our settlement function to give the same outcome in one function call, without needing to buy and sell tokens.

Call Option Features:

• Underlying Asset or tokens

• Strike price quoted in paired currency

• Expiry date or duration

• Cost or premium to buy hedge, quoted in paired currency

• Hedge writer always has to provide collateral, thus the payoff (if any) to the taker is always in underlying assets, whereas for writer payoff is always in paired currency of the underlying tokens.

Screenshot

Example