The bet is on rise/fall of a forex index. How would a bookmaker decide the odds for these two events.
I can understand that the price of the options can be determined using Black Sholes formula but I think the odds for rise/fall should be complimentary to each other but that isn't the case.
Any pointers are much appreciated.
I can understand that the price of the options can be determined using Black Sholes formula but I think the odds for rise/fall should be complimentary to each other but that isn't the case.
Any pointers are much appreciated.
