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How does the OAS affect the pricing of cryptocurrencies compared to the Z-spread?

avatarnowrin rashidNov 25, 2021 · 3 years ago1 answers

Can you explain how the option-adjusted spread (OAS) affects the pricing of cryptocurrencies in comparison to the Z-spread? What are the key differences between these two measures and how do they impact the valuation of cryptocurrencies?

How does the OAS affect the pricing of cryptocurrencies compared to the Z-spread?

1 answers

  • avatarNov 25, 2021 · 3 years ago
    At BYDFi, we understand the importance of evaluating the pricing of cryptocurrencies from different perspectives. The OAS and the Z-spread are two measures that can provide valuable insights into the valuation of cryptocurrencies. While the OAS considers the impact of embedded options, the Z-spread focuses on credit risk. Both measures have their merits and can be used in conjunction to assess the pricing of cryptocurrencies. It's important for investors to consider multiple factors and measures when making investment decisions in the cryptocurrency market.