Options-implied probabilities are determined using the Black-Scholes model or other pricing models that consider factors such as the current spot market price, strike price, time to expiration, volatility, and the risk-free rate. These probabilities are influenced by implied volatility, meaning that higher volatility increases the likelihood of bitcoin reaching specific price levels.
Source link
This article was complied by AI and NOT reviewed by human. More information can be found in our Terms and Conditions.