I think you should set HBD equal to 1 and calculate the implied volatility of Hive only.
HBD is set to 1 for the witness price feeds. Hive price is derived as an exchange rate with regards to HBD = 1.
Check me out witnessing and setting prices as an example:
Hahahaha! I didn't want to impress you with my witnessing. Just wanted to point out that HBD is always assumed as 1. Hive is the only thing moving. That means you can calculate an internal Hive price from that relationship and get your implied volatility. ;)
oh haha. :o) I think we might have different definitions of implied volatility. Yours is volatility of the market versus feed price? And mine is volatility of an option contract with the contract being the ability to convert HBD to HIVE. The conversion rate is determined by the feed price but because conversion takes 3.5 days it is different.
Implied volatility for Hbd should be interesting since you have the option to convert it to Hive but then I would have find/create a pricing equation.
I think you should set HBD equal to 1 and calculate the implied volatility of Hive only.
HBD is set to 1 for the witness price feeds. Hive price is derived as an exchange rate with regards to HBD = 1.
Check me out witnessing and setting prices as an example:
https://www.hiveblockexplorer.com/tx/e5d5a575446c8b0fd1750eff8f4855a71ad95a77
It looks prettier if you look at my last feed publish here:
https://www.hiveblockexplorer.com/@blue-witness
:D
Congrats on the witnessing.
This seems like a chicken and egg problem. It is possible to view Hive as the asset and HBD as the option and vice versa.
Hahahaha! I didn't want to impress you with my witnessing. Just wanted to point out that HBD is always assumed as 1. Hive is the only thing moving. That means you can calculate an internal Hive price from that relationship and get your implied volatility. ;)
oh haha. :o) I think we might have different definitions of implied volatility. Yours is volatility of the market versus feed price? And mine is volatility of an option contract with the contract being the ability to convert HBD to HIVE. The conversion rate is determined by the feed price but because conversion takes 3.5 days it is different.
Fucking geeks