Читать книгу Binary Options - Hamish Raw - Страница 7

Fig 1.1.1 presents three different random walks that have been generated in order to illustrate winning and losing bets. All the upbets start with an underlying price of $100, have twenty-five days to expiry and a strike price of $101.

1. Random Walk 1 (RW1) flirts with the $101 level after five days, retreats back to the $100 level, rises and passes through the $101 strike after eighteen days and then drifts to settle at a price around $100. The buyer of the upbet loses.

2. RW2 travels up to the $101 level after the eighth day where it moves sideways until, with nine days to expiry, the underlying resumes its upwards momentum. The underlying continues to rise and is around the $102.75 level at expiry, well above the strike of $101, so is consequently a winning bet with the seller ending the loser.