Cryptocurrency, Trading, Options, Defi, Bitcoin.
value of its future payoffs. Let’s consider the following trading opportunity below: Win $100 when the Lakers win the ’22 championship. We think there is a 30% chance this will happen Lose $20 in all other cases The Expected Value at Expiry = ($100 x 0.30) + (-$20 x (1–0.3)) = $16.00 Using a 0%