Hypothetical: Probabilities and price targets

Kevin Schmit said:
a) is the price of a double-no-touch, formulas available online or in books (e.g. Haug)
b) and c) are the ratios of two binaries, converted to percentages. You can approximate a binary with a very narrow vert, which will go to the binary price in the limit as the distance between strikes goes to zero.

For a little extra accuracy, price the above undiscounted (that is assume RFR of 0%).

Ignore any replies by Quanto, he's a multi-nick imbecile.
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Hey @Kevin Schmit, I demand an explanation and an apology.
The @Moderator should take action against you b/c you unfairly attempt to badmouth active posters, and by this also doing harm to the site itself, much like the sicko Destriero did and his followers still attempt to... You much look like one of them... You might get Likes from them, but they have certainly no clue of such advanced topics... :)

For everyone to know: I get hated by some such weak-characters b/c my knowledge and answers and contributions to ET are simply classes better than theirs... Ie. I get hated b/c I'm too good! :) Eat it! :-)
 
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One needs to know also the timeframe (ie. DTE) as well,
b/c for example in t=1y more is possible than in t=1d . :)
Also volatility (= stddev * 100) has to be supplied with such questions.
Ie. as said, the data in the question is incomplete.
 
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Quanto said:
One needs to know also the timeframe (ie. DTE) as well,
b/c for example in t=1y more is possible than in t=1d . :)
Also volatility (= stddev * 100) has to be supplied with such questions.
Ie. as said, the data in the question is incomplete.
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Quanto, I hate to be trite using a decades old cliche..... but you're the type of guy that when asked what time it is..... responds with how the watch was built. And then wants to argue about it.
Fine tune that a little. You'll do better. Park the the neuro-synapsis's and let a little real world fresh air and walking around sense waft its way into the basement.
 
vanzandt said:
Quanto, I hate to be trite using a decades old cliche..... but you're the type of guy that when asked what time it is..... responds with how the watch was built. And then wants to argue about it.
Fine tune that a little. You'll do better. Park the the neuro-synapsis's and let a little real world fresh air and walking around sense waft its way into the basement.
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You'll never beat the market using the analytical side of your brain.
~vz
 
@vanzandt, thx, but how does your concluding answer look like to the question in the OP?
Ie. criticizing others who just want to help is also not the most beautiful art, right? :-)
 
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vanzandt said:
Quanto, I hate to be trite using a decades old cliche..... but you're the type of guy that when asked what time it is..... responds with how the watch was built. And then wants to argue about it.
Fine tune that a little. You'll do better. Park the the neuro-synapsis's and let a little real world fresh air and walking around sense waft its way into the basement.
More...

except his “clock” is is really a spatula and he’s arguing that the clock on Big Ben is wrong.
 
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