Читать книгу Binary Options - Hamish Raw - Страница 5

This section introduces the reader to the two basic bets, the upbet and the downbet. These two bets are arguably the foundation for all financial engineering since any instrument can be broken down into a multiple of upbets or downbets.

In chapter 1 the reader is initially introduced to the concept of when bets are winners and losers using random walk illustrations and P&L graphs.

Chapters 2 through to Chapter 4 inclusive are concerned with how upbet and downbet prices change owing to changes in the price of the underlying, changes in the volatility of the price of the underlying, plus time decay. These sensitivity analyses are known as the ‘greeks’ in options parlance.