as bad as it is for the option writer right now, at least gox being dead will not count against the weighted price at settlement.
Presumably. I haven't heard an official verdict on how they will be settled. Looks like he is only down 8-9000BTC at the moment, I guess it could be worse :-P
Would be so epic if he came out with a positive ROI on this trade. The stuff of legends.
It might actually happen too... Or it might be refunded at purchase price.
See :
What is the reference BTC/USD ratio you use for options exercises ?
The 24 hour volume-weighted cross-exchange ratio is used, as published by bitcoincharts. The same figure is available in any IRC channel where gribble is present. The command is ;;bc,24hprc
26. What if that becomes unavailable ?
If the service is temporarily unavailable the MPOE market maker bot for options on MPEx will stop quoting. Exercises will occur at the last available price. This has happened a few times in the past, but the interruption never exceeded a couple of hours.
Should the service be unavailable for a longer interval I will devise some other way to obtain the data and calculate the average. In principle I would prefer for a third party to be doing this, but absent such it will be done by MPEx itself.
If for whatever reason there no longer exists a reliable way to calculate average prices (such as for instance MtGox being suddenly and permanently closed or other such catastrophic event) options will be refunded at prices originally paid.
These two statements are in conflict with each other. Bitcoincharts is still quoting, but Mt Gox catastrophically closed.