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What Is the Impact of Staking Rewards on the Valuation of an American Call Option on a Proof-of-Stake Cryptocurrency?

Staking rewards are like dividends; they increase the incentive for early call exercise to capture the income stream.
Greeks.Live23.11.25

What Is the Impact of Staking Rewards on the Valuation of an American Call Option on a Proof-of-Stake Cryptocurrency?

Staking rewards are analogous to dividends, representing an income stream from holding the underlying asset. This income stream increases the incentive for the American call option holder to exercise early to capture the rewards.

Therefore, the possibility of staking rewards increases the value of the early exercise feature and thus the overall option premium.

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