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Mr. Bobby Brown of Brownian Motion fame |
These formulas allow the average binary options trader to understand how to predict what a commodity will do in a given time frame. So, if you've watching the price of oil and you want to invest in the idea that oil will reach a certain range in a set amount of time, you can look at the black-scholes formula to see if it agrees with your assessment.
Does it look like they also predict that this will happen? Or do they show that it would be better for you to invest in the binary options idea that oil will not touch a certain amount?
These are the types of ways that black-scholes and geometric brownian motion can assist the typical binary options trader today.
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