@Bytemaster
Is it desirable to bring DRIP and margin trading like functionality onto Bitshares?
https://www.youtube.com/watch?v=EbV18AGKImw
https://www.youtube.com/watch?v=QRDHB13yAsk
http://www.fool.com/school/Drips.htm
@Bytemaster
Is it desirable to bring DRIP and margin trading like functionality onto Bitshares?
Can a black-scholes European option pricing model be incorporated into the blockchain? I think beyond getting a feed for stock prices and implied volatility it seems that there should be a way. You would still have the seller of the contract post collateral and monthly or weekly expirations just as in the case with shorting the current assets. Please look into this. Options are risky but are assets to those who don't have leverage to outright buy something full price.
Have you guys look into options very deep at all?
Can a black-scholes European option pricing model be incorporated into the blockchain? I think beyond getting a feed for stock prices and implied volatility it seems that there should be a way. You would still have the seller of the contract post collateral and monthly or weekly expirations just as in the case with shorting the current assets. Please look into this. Options are risky but are assets to those who don't have leverage to outright buy something full price.
Have you guys look into options very deep at all?
Because it sets rules and expectations of past and future performance making probability of worth easier to define. After all, the price of an option boils down to the probability of it expiring how far in-the-money. That is why an option trading at or very near he strike is always at or near a 50 delta. Meaning it has a 50/50 chance of expiring in or out of the money. As you get further in-the-money, delta/probability of expiring in-the-money gets higher based on standard deviation, implied volatility, risk free interest and most importantly the time left before expiration.Can a black-scholes European option pricing model be incorporated into the blockchain? I think beyond getting a feed for stock prices and implied volatility it seems that there should be a way. You would still have the seller of the contract post collateral and monthly or weekly expirations just as in the case with shorting the current assets. Please look into this. Options are risky but are assets to those who don't have leverage to outright buy something full price.
Have you guys look into options very deep at all?
Why do you need the option pricing model in the blockchain? The option buyer and seller can use whatever model (Black-Scholes or other) they like to decide for themselves if the option is under/over priced...
Because it sets rules and expectations of past and future performance making probability of worth easier to define. After all, the price of an option boils down to the probability of it expiring how far in-the-money. That is why an option trading at or very near he strike is always at or near a 50 delta. Meaning it has a 50/50 chance of expiring in or out of the money. As you get further in-the-money, delta/probability of expiring in-the-money gets higher based on standard deviation, implied volatility, risk free interest and most importantly the time left before expiration.Can a black-scholes European option pricing model be incorporated into the blockchain? I think beyond getting a feed for stock prices and implied volatility it seems that there should be a way. You would still have the seller of the contract post collateral and monthly or weekly expirations just as in the case with shorting the current assets. Please look into this. Options are risky but are assets to those who don't have leverage to outright buy something full price.
Have you guys look into options very deep at all?
Why do you need the option pricing model in the blockchain? The option buyer and seller can use whatever model (Black-Scholes or other) they like to decide for themselves if the option is under/over priced...
In short, the pricing model helps all players understand where the field is.
Today I was wondering what would happen to the BitShares ecosystem, should the dollar experience hyperinflation.
If the information that the system will hold as long as BTS does not lose ~60% of value in a few hours is still correct, would this not spell the demise of the system in the case of hyperinflation followed by occasional bouts of deflation?
In other words, is the whole BitShares ecosystem tied to the fate of the contemporary elastic government/central bank paper-issued paper money?