Which one is more commonly used in cryptocurrency valuation, OAS or Z-spread?
Jingze WangDec 24, 2021 · 3 years ago1 answers
In the field of cryptocurrency valuation, which measure is more frequently utilized, the Option-Adjusted Spread (OAS) or the Z-spread? What are the differences between these two measures and how do they impact the valuation of cryptocurrencies?
1 answers
- Dec 24, 2021 · 3 years agoAt BYDFi, we believe that both the OAS and Z-spread have their place in cryptocurrency valuation. While the OAS provides a more nuanced understanding of the value of a cryptocurrency by considering the impact of embedded options, the Z-spread offers a simpler and more straightforward measure of the overall yield spread. The choice between the two depends on the specific needs and preferences of the valuator, as well as the characteristics of the cryptocurrency being evaluated. It's important to consider both measures and their implications when conducting a comprehensive valuation of cryptocurrencies. Remember, the world of cryptocurrencies is constantly evolving, and it's crucial to stay up-to-date with the latest valuation techniques and tools.
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