The Use of Contracts for Difference ('CFD') Spread Bets and Binary
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V. Black-Scholes Model: Derivation and Solution
V. Black-Scholes model: Derivation and solution Beáta Stehlíková Financial derivatives, winter term 2014/2015 Faculty of Mathematics, Physics and Informatics Comenius University, Bratislava V. Black-Scholes model: Derivation and solution – p.1/36 Content Black-Scholes model: • Suppose that stock price follows a geometric ◦ S Brownian motion dS = µSdt + σSdw + other assumptions (in a moment) We derive a partial differential equation for the price of ◦ a derivative Two ways of derivations: • due to Black and Scholes ◦ due to Merton ◦ Explicit solution for European call and put options • V. Black-Scholes model: Derivation and solution – p.2/36 Assumptions Further assumptions (besides GBP): • constant riskless interest rate ◦ r no transaction costs ◦ it is possible to buy/sell any (also fractional) number of ◦ stocks; similarly with the cash no restrictions on short selling ◦ option is of European type ◦ Firstly, let us consider the case of a non-dividend paying • stock V. Black-Scholes model: Derivation and solution – p.3/36 Derivation I. - due to Black and Scholes Notation: • S = stock price, t =time V = V (S, t)= option price Portfolio: 1 option, stocks • δ P = value of the portfolio: P = V + δS Change in the portfolio value: • dP = dV + δdS From the assumptions: From the It¯o • dS = µSdt + σSdw, ∂V ∂V 1 2 2 ∂2V ∂V lemma: dV = ∂t + µS ∂S + 2 σ S ∂S2 dt + σS ∂S dw Therefore: • ∂V ∂V 1 ∂2V dP = + µS + σ2S2 + δµS dt ∂t ∂S 2 ∂S2 ∂V + σS + δσS dw ∂S V. Black-Scholes model: Derivation and solution – p.4/36 Derivation I. -
Crowd Wisdom in NFL Point Spread and Over/Under Betting
Crowd Wisdom In NFL Point Spread and Over/Under Betting Group 4: Jonathan Bell, Tyler Ventura, Sam Cantor, Alan Gadjev, Nate Mays Background Sports Betting is a growing and already substantial business in the United States. Until recently, sports related betting was only legal in specific areas of the United States such as Las Vegas, Delaware, Montana, and Oregon.1 Under the Professional and Amateur Sports Protection Act of 1992 (PASPA), sports betting was banned for all sports excluding parimutuel horse and dog racing and jai alai.2 While sports betting is limited in availability, as of November 2017 $4.9 billion per month was legally bet on sports in Nevada alone. Despite the prohibition, illegal sports betting is very popular in the United States. As of the Supreme Court case Murphy v. National Collegiate Athletic Association (2018), the PASPA was found unconstitutional and the decision to sponsor sports related gambling was relegated to the state governments.3 Since this ruling, a number of states have brought forward bills related to legalization of sports betting. Ohio State economist Jay L. Zagorsky conservatively estimates that the total value of the sports betting market will be $70 billion dollars, but many argue that the value will be approximately $150 billion, with largest estimates at close to $380 billion.4 This project will focus on sports betting on the NFL, specifically point spread betting and over/under betting. Point Spread betting is a form of sports gambling that is particularly popular in Las Vegas sportsbooks. Spread betting involves the setting of a “favorite” and an “underdog” by oddsmakers, and the assigning of additional points to be used when calculating the score. -
Computation of Binomial Option Pricing Model with Parallel
View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by KHALSA PUBLICATIONS I S S N 2 2 7 8 - 5 6 1 2 Volume 11 Number 5 International Journal of Management and Information T e c h n o l o g y Computation Of Binomial Option Pricing Model With Parallel Processing On A Linux Cluster Harya Widiputra Faculty of Information Technology, Perbanas Institute Jakarta, Indonesia [email protected] ABSTRACT Binary Option Pricing Model (BOPM) is one approach that can be utilized to calculate the value of either call or put option. BOPM generally works by building a binomial tree diagram, also known as lattice diagram to explore all possible option values that occur based on the intrinsic price of the underlying asset in a range of specific time period. Due to its basic characteristics BOPM is renowned for its longer lead times in calculating option values while also acknowledged as a technique that can provide an assessment of the most fair option value. Therefore, this study aims to shorten the BOPM completion time of calculating the value of an option by building a computer cluster and presently implement the BOPM algorithm into a form that can be run in parallel processing. As an outcome, a Linux-based computer cluster has been built and conversion of BOPM algorithm so that it can be executed in parallel has been performed and also implemented using Python in this research. Conclusively, results of conducted experiments confirm that the implementation of BOPM algorithm in a form that can be executed in parallel and its application on a computer cluster was able to limit the growth of the completion time whilst at the same time maintain quality of calculated option values. -
Opposition, CFTC V. Banc De Binary
Case 2:13-cv-00992-MMD-VCF Document 37 Filed 08/08/13 Page 1 of 30 Kathleen Banar, Chief Trial Attorney (IL Bar No. 6200597) David Slovick, Senior Trial Attorney (IL Bar No. 6257290) Margaret Aisenbrey, Trial Attorney (Mo Bar No. 59560) U.S. Commodity Futures Trading Commission 1155 21 St. NW Washington, DC 20581 [email protected], [email protected], [email protected] (202) 418-5335 (202) 418-5987 (facsimile) Blaine T. Welsh (NV Bar No. 4790) Assistant United States Attorney United States Attorney’s Office 333 Las Vegas Boulevard, Suite 5000 Las Vegas, Nevada 89101 [email protected] (702) 388-6336 (702) 388-6787 (facsimile) UNITED STATES DISTRICT COURT DISTRICT OF NEVADA ) U.S. COMMODITY FUTURES TRADING ) COMMISSION, ) ) Case No. 2:13-cv-00992-MMD-VCF Plaintiff, ) ) PLAINTIFF’S OPPOSITION TO v. ) DEFENDANT’S MOTION TO ) DISMISS COUNTS ONE, THREE ) AND FOUR OF THE COMPLAINT BANC DE BINARY LTD. (A/K/A E.T. ) BINARY OPTIONS LTD.), ) ) Defendant. ) ) 1 Case 2:13-cv-00992-MMD-VCF Document 37 Filed 08/08/13 Page 2 of 30 The United States Commodity Futures Trading Commission (“CFTC” or “Commission”) opposes Banc de Binary’s Motion to Dismiss Counts I, III and IV of the Complaint (“Defendant’s Motion”),1 and states as follows: I. SUMMARY Since at least May 2012 Banc de Binary Ltd. (A/K/A E.T. Binary Options) (“Banc de Binary” or “Defendant”) has been violating the CFTC’s long-standing ban on trading options contracts with persons located in the United States off of a contract market designated by the CFTC for that purpose (i.e., “off-exchange”). -
Spread Betting Guide
Finding the right spread betting broker Contents Finding the right spread betting company 2 A financial spread betting shopping list 3 Spread betting education and trading platforms 4 Mobile Trading 5 Minimum account opening level 6 Shopping around on price 7 Market range 8 How to do they make their money? 10 What about CFDs? 14 What about advisory spread betting services? 15 thearmchairtrader.com Finding the right spread betting company Choosing the right spread betting company can be a bewildering process. Many firms are active advertisers at the moment, and are buying spaces in prominent locations, including billboards of major railway stations, in the business sections of national newspapers and online. At a time when many financial services companies are struggling, spread betting firms are continuing to make money. There are now more companies offering spread betting services than ever before. The barriers to entry are lower, while the big, established firms are seeking ways to innovate, and to provide products and services that others cannot afford to deliver. In addition, the overall cost of trading is coming down as more firms seek to compete on price. For the new trader, this is a great time to be starting out, as many companies will bend over backwards to win your business. Finally, many other companies are partnering with the big spread betting firms to offer ‘white labelled’ spread betting. These are usually banks and brokerages who don’t want to go through the cost and effort of establishing their own spread betting operation, but are attracted by the idea of taking a slice of the profits. -
Match Fixing and Sports Betting in Football: Empirical Evidence from the German Bundesliga
Match Fixing and Sports Betting in Football: Empirical Evidence from the German Bundesliga Christian Deutscher Eugen Dimant Brad R. Humphreys University of Bielefeld University of Pennsylvania West Virginia University This version: January 2017 Abstract Corruption in sports represents an important challenge to their integrity. Corruption can take many forms, including match fixing by players, referees, or team officials. Match fixing can be difficult to detect. We use a unique data set to analyze variation in bet volume on Betfair, a major online betting exchange, for evidence of abnormal patterns associated with specific referees who officiated matches. An analysis of 1,251 Bundesliga 1 football matches from 2010/11 to 2014/15 reveals evidence that bet volume in the Betfair markets in these matches was systematically higher for four referees relative to matches officiated by other referees. Our results are robust to alternative specifications and are thus suggestive of potentially existing match fixing and corruption in the German Bundesliga. Keywords: corruption, betting exchange, football, referee bias JEL: D73, K42, L8, Z2 Deutscher: University of Bielefeld, Faculty of Psychology and Sports Science, Department of Sport Science. Postfach 10 01 31, D-33501 Bielefeld Germany; Phone : +49 521 106-2006; Email: christian.deutscher@uni- bielefeld.de Dimant: University of Pennsylvania, Behavioral Ethics Lab, Philosophy, Politics and Economics Program. 311 Claudia Cohen Hall, 249 S 36th Street, 19104 Philadelphia, USA; Phone: 215-898-3023; E-mail: [email protected] Humphreys: Department of Economics, West Virginia University. 1601 University Ave., PO Box 6025, Morgantown WV 26506-6025; Phone: (304) 293-7871; Email: [email protected] We thank Michael Lechner, Victor Matheson and Amanda Ross as well as participants at the WEAI Portland 2016 and ESEA 2016 conference for comments on earlier versions of this paper. -
What Are Binary Options?
PA R T I Introduction to Binary Options his section will provide you with an overview and discussion of the T main benefi ts of binary option trading. What You Will Learn: • What are binary options? • How do binary options differ from traditional options? • Which underlying instruments are binary options available to trade on? • Where can youhttp://www.pbookshop.com trade binary options? • What are the benefi ts of trading binary options? • What makes binary options unique compared to other instruments and options? COPYRIGHTED MATERIAL When you complete this section you should have a basic understand- ing of what binary options are and be familiar with their main advantages. 1 c01.indd 1 11/8/2012 4:12:44 PM http://www.pbookshop.com c01.indd 2 11/8/2012 4:12:44 PM CH A P T E R 1 What Are Binary Options? inary options are also known as digital options or all‐or‐nothing options. They are derivative instruments that can be considered a B yes‐or‐no proposition—either the event happens or it does not. Binary options are considered binary because there are only two po- tential outcomes at expiration: 0 or 100; 0 and 100 refer to the settlement value of a binary option and could be viewed in dollars. At expiration, if you are incorrect, you do not make anything ($0), and if you are correct, you make up to $100. The next section will go into further detail on the set- tlement value of binary options. ON WHAT ASSEThttp://www.pbookshop.com CLASSES ARE BINARY OPTIONS AVAILABLE? Binary options are available on four different asset classes. -
IFA Rules Against Illegal and Irregular Betting and Match-Fixing 2016
IFA Rules against illegal and irregular betting and match-fixing Preamble The International Fistball Association (IFA), being aware, that - betting is part of sport since the beginning; - sports betting is a way of demonstrating the public’s attachment to sports and athletes; - sports betting, offered by national lotteries or private operators, is one of the most important means of financing sport; - without sport, there is no sports betting; - national legislation concerning the participation of sports betting operators to the financing of the sports movement is different from one country to another; however everything possible must be done to ensure a fair return from the betting operators, not only for the organizers of sports events, - but more generally for the development of sport; - the IOC adopted the Olympic Movement Code on the Prevention of the Manipulation of Com- petitions to strengthen the integrity and credibility of sport and for the successful protection of clean athletes; - everything possible must be done to ensure the integrity of sports competitions; and being committed to safeguard the integrity in Fistball has established the following rules against illegal and irregular betting and match-fixing: Definitions: Participants: Participants in any IFA sports events and competitions sanctioned by any member fed- eration, including all accredited individuals like athletes, judges, the athletes’ entourage, IFA and member federation employees, officials and families, and the event organizing committee and their entourage. -
Criminalizing Match-Fixing As America Legalizes Sports Gambling
Marquette Sports Law Review Volume 31 Issue 1 Fall Article 2 2020 Criminalizing Match-Fixing as America Legalizes Sports Gambling Jodi S. Balsam Follow this and additional works at: https://scholarship.law.marquette.edu/sportslaw Part of the Entertainment, Arts, and Sports Law Commons Repository Citation Jodi S. Balsam, Criminalizing Match-Fixing as America Legalizes Sports Gambling, 31 Marq. Sports L. Rev. 1 () Available at: https://scholarship.law.marquette.edu/sportslaw/vol31/iss1/2 This Article is brought to you for free and open access by the Journals at Marquette Law Scholarly Commons. For more information, please contact [email protected]. BALSAM – ARTICLE 31.1 12/17/2020 8:47 PM ARTICLES CRIMINALIZING MATCH-FIXING AS AMERICA LEGALIZES SPORTS GAMBLING JODI S. BALSAM INTRODUCTION1 In May 2018, the Supreme Court decided Murphy v. NCAA,2 striking down the Professional and Amateur Sports Protection Act (PASPA) that prohibited states from allowing sports betting.3 At this writing, more than two years after PASPA’s judicial repeal, eighteen states have enacted legal sports betting, five states plus Washington, D.C. have passed legislation that is pending launch, and twenty-four more have introduced sports gambling bills.4 Somewhat myopically, these legislative efforts fail to address the game integrity concerns flagged by the sports leagues and other entities that create the contests on which Associate Professor of Clinical Law, Director of Externship Programs, Brooklyn Law School. I received excellent research assistance from Nick Rybarczyk, Matthew Schechter, Madison Smiley, and Katherine Wilcox. Thank you to Daniel Wallach and to participants in the Brooklyn Law School Faculty Workshop for their time and helpful comments and suggestions. -
How to Trade Binary Options Successfully
How to Trade Binary Options Successfully A Complete Guide to Binary Options Trading By Meir Liraz ___________________________________________________________________ Revealed At Last! The Best Kept Secret Among Successful Binary Options and Forex Traders The Easiest Way to Make Money Trading Online ___________________________________________________________________ Published by BizMove Binary Options Trading Center Copyright © Meir Liraz. All Rights Reserved. Our Preferred Binary Options Broker We currently trade at this broker. After testing several Binary Options and Forex platforms we find this one to be the best. What made the difference is a unique feature that allow us to watch and copy the strategies and trades of the best performing traders on the platform. You can actually see each move the "Guru" traders make. This method works nicely for us. Since we started trading at this broker we noticed an increase of our successful trades and profits when compared to our former brokers. Having said that, please note that all trading involves risk. Only risk capital you're prepared to lose. Past performance does not guarantee future results. This post is for educational purposes and should not be considered as investment advice. Table of Contents 1. The Single Most Critical Factor to Binary Options Trading Success 2. What are Binary Options 3. The Flow of Decisions in a Binary Options Trade 4. Advantages and Disadvantages of Binary Options Trading 5. Binary Trading Risk Management 6. What You Need to Succeed in Binary Options 7. How Much Money You Need to Start Trading 8. Technical Analysis As a Tool for Binary Trading Success 9. Developing a Binary Options Strategy and Entry Signals 10. -
On Black-Scholes Equation, Black- Scholes Formula and Binary Option Price
On Black-Scholes Equation, Black- Scholes Formula and Binary Option Price Chi Gao 12/15/2013 Abstract: I. Black-Scholes Equation is derived using two methods: (1) risk-neutral measure; (2) - hedge. II. The Black-Scholes Formula (the price of European call option is calculated) is calculated using two methods: (1) risk-neutral pricing formula (expected discounted payoff) (2) directly solving the Black-Scholes equation with boundary conditions III. The two methods in II are proved to be essentially equivalent. The Black-Scholes formula for European call option is tested to be the solution of Black-Scholes equation. IV. The value of digital options and share digitals are calculated. The European call and put options are be replicated by digital options and share digitals, thus the prices of call and put options can be derived from the values of digitals. The put-call parity relation is given. 1. The derivation(s) of Black-Scholes Equation Black Scholes model has several assumptions: 1. Constant risk-free interest rate: r 2. Constant drift and volatility of stock price: 3. The stock doesn’t pay dividend 4. No arbitrage 5. No transaction fee or cost 6. Possible to borrow and lend any amount (even fractional) of cash at the riskless rate 7. Possible to buy and sell any amount (even fractional) of stock A typical way to derive the Black-Scholes equation is to claim that under the measure that no arbitrage is allowed (risk-neutral measure), the drift of stock price equal to the risk-free interest rate . That is (usually under risk-neutral measure, we write Brownian motion as , here we remove Q subscript for convenience ) (1) Then apply Ito’s lemma to the discounted price of derivatives , we get [ ] [( ) ] (2) Still, under risk-neutral measure we can argue that is martingale. -
Introduction Section 4000.1
Introduction Section 4000.1 This section contains product profiles of finan- Each product profile contains a general cial instruments that examiners may encounter description of the product, its basic character- during the course of their review of capital- istics and features, a depiction of the market- markets and trading activities. Knowledge of place, market transparency, and the product’s specific financial instruments is essential for uses. The profiles also discuss pricing conven- examiners’ successful review of these activities. tions, hedging issues, risks, accounting, risk- These product profiles are intended as a general based capital treatments, and legal limitations. reference for examiners; they are not intended to Finally, each profile contains references for be independently comprehensive but are struc- more information. tured to give a basic overview of the instruments. Trading and Capital-Markets Activities Manual February 1998 Page 1 Federal Funds Section 4005.1 GENERAL DESCRIPTION commonly used to transfer funds between depository institutions: Federal funds (fed funds) are reserves held in a bank’s Federal Reserve Bank account. If a bank • The selling institution authorizes its district holds more fed funds than is required to cover Federal Reserve Bank to debit its reserve its Regulation D reserve requirement, those account and credit the reserve account of the excess reserves may be lent to another financial buying institution. Fedwire, the Federal institution with an account at a Federal Reserve Reserve’s electronic funds and securities trans- Bank. To the borrowing institution, these funds fer network, is used to complete the transfer are fed funds purchased. To the lending institu- with immediate settlement.