I have a problem.
I get paid 100BTC with $10 per coin and exchange that for $1000 today
In one month, I want to convert back my $1000 for $10 per coin to obtain 100 BTC
My problem is that BTC/$ price might change in 1 month. I want to know how much it would cost me to effectively lock in the current exchange rate for one month.
If you have any concrete links and show me how you arrived at your numbers, that would greatly help.
I've looked at futures contracts and in particular, icbit.se, but it is still not clear to me how I would calculate this cost of insurance. The cost may be derived as a percentage of the BTC amount I want to lock in.
Thanks.