Pricing
Last updated
Last updated
The calculation of initial investment and leverage for opening a position on Venkate OptionX depends on the following factors:
The longer the product’s time to expiration, the higher the likelihood of reaching the target price. For products with the same target price, those with a longer time to expiration have higher time value, and thus are priced higher than those with shorter durations. Currently, Venkate OptionX offers a 10-minute settlement cycle, meaning a new settlement period starts immediately after the previous one concludes.
In traditional options markets, when a user selects a product with a target price and the current market price reaches or exceeds this target, the product becomes profitable. The profit amount depends on the difference above the target price. As the market price nears the target, the potential profitability at expiration increases, making the product’s price higher. In Venkate OptionX, this is reflected in the cost of entry when users select the same position value.
Volatility indicates the price fluctuation range of the target asset in the market. Higher volatility means larger price swings, increasing the risk for asset holders. Volatility significantly impacts product pricing; when volatility is high, the likelihood of reaching or surpassing the target price rises, thus raising the product’s price. Venkate OptionX calculates the user’s entry cost by referencing the historical volatility of the underlying asset.
Venkate OptionX utilizes the traditional Black-Scholes option pricing model, commonly used in options markets, to determine pricing.
公式为：
C=SN(d1)−Xe−rt(d2)
P=Xe−rtN(−d2)−SN(−d1)P=Xe−rtN(−d2)−SN(−d1)
C is the price of a bullish product
P is the price of a bearish product
S is the current price of the underlying asset
X is the settlement (execution) price
t is the time to expiration
r is the risk-free interest rate
N() is the standard normal distribution function
d1 and d2 are adjusted parameters, the specific calculation method is as follows:
d1=lnSX+(r+σ22)tσtd1=σtlnXS+(r+2σ2)t
d2=d1−σtd2=d1−σt
σ is the annualized volatility of the underlying asset
