Hello, I am new here and heard about binary bets only in the last few days.
Although I understand the way it works, I would like to know the maths used for pricing these bets. This may have been posted before, but I could not find any formula. Underlying price, time to expiry, volatility must come into play but I have yet to figure it out ... If someone had FTSE 100 cash price on a 10 mn basis together with say end of day FTSE up binary taken at the same time that should be fairly easy to correlate. Unfortunately , I can't get these as I am on evening Internet connection only
I
Although I understand the way it works, I would like to know the maths used for pricing these bets. This may have been posted before, but I could not find any formula. Underlying price, time to expiry, volatility must come into play but I have yet to figure it out ... If someone had FTSE 100 cash price on a 10 mn basis together with say end of day FTSE up binary taken at the same time that should be fairly easy to correlate. Unfortunately , I can't get these as I am on evening Internet connection only