On OCT 31 CME announced listing of BTC (BTCUSD) futures. 1 contract is of 5 BTC.
I am anticipating BTC options. My question is how to estimate BTC option premium?
It is common to use an option calculator. Among the others I should provide 2 most valuable parameters: HV and interest rate.
Ok, I can calculate HV. Should I just set interest rate to 0?
Most people believe in BTCs getting more expensive.
HV (historical volatility) is just a scalar. HV does not consider the fact that Bitcoin has revealed a significant growth these years. The only way to point on that insight (uptrend) for an option calculator is to use interest rate.