Can we try it again? I think your are talking about a reserve requirement necessary when selling X.IDIFF.JUN?
I'm asking what happens when you purchase a contract. I thought the contract settled on the third wednesday of the month for which they were listed?
So I still have my two questions.
All extant IDIFF shares together will never pay out more than sum of all reserve requirements that were set aside when they got created. Hence the 0.13-0.18 estimated maximal cover/payout. To answer your concrete questions:
> a) when it settles, if difficulty is 20.8 mn, I would receive .208 BTC?
In theory yes, but actually they will get autoexercised much sooner when the rising difficulty meets maximal cover.
> b) when it settles, if difficulty is 14.8 mn, I would receive .148 BTC?
Again yes, but only if the cover per share is more than 0.148 BTC.