strong buy
Deribit Launches European Cash-Settled Inverse Options with Clear Pricing and Settlement
Deribit provides European-style cash-settled options, which can only be exercised at expiration and not earlier. The settlement is automatic at expiry, with the option writer paying the intrinsic value in cash rather than delivering the underlying asset. Buyers of options pay the premium upfront, which is deducted from their cash balance. These inverse options are priced in the base currency, but USD equivalent and implied volatility are also available for reference. Pricing involves the latest index or forward price, and the options are set with a contract multiplier of 1, meaning one BTC per contract for call and put options.
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AI Analysis
Deribit's implementation of European-style cash-settled options on cryptocurrencies introduces a straightforward and familiar framework for traders accustomed to traditional options. The European exer...
AI Recommendation
For traders interested in derivatives on cryptocurrencies, Deribit's European cash-settled inverse options constitute an attractive choice due to their simplicity and clarity. It is advisable to monit...
Disclaimer
The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.