How Does the Lack of Standardized Expiration Dates in Some Crypto Options Affect Their Valuation and Risk?

Non-standardized expiration dates complicate the use of established options valuation models like Black-Scholes, which rely on defined parameters. This lack of standardization fragments market liquidity, making it harder to accurately determine implied volatility.

Consequently, pricing becomes less efficient, and the risk management process, including hedging, is more complex and prone to error.