Fuzzy pricing of binary option based on the long memory property of financial markets

Qin, Xuezhi; Lin, Xian-Wei; Shang, Qin

doi:10.3233/jifs-191551

Cited by 13 publications

(10 citation statements)

References 16 publications

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“…Difference of market type Prior to discussing Binary Options, it is imperative that an understanding of Primary, Secondary, and OTC (Over the Counter) markets is obtained. The prime market occurs when the issuer sells its securities for the first time to general investors [16]. In order to offer shares to the Prime Market, the issuer company must provide detailed information about the company (prospectus).…”

Section: Literature Reviewmentioning

confidence: 99%

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The Effect of Binary Option Trading in Social Phenomenon: Indonesia Case

Putra¹,

Husien²,

Budiharseno³

2022

taiwanproceeding

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Binary options trading consists of derivative instruments. There are several factors that contribute to the misunderstanding of community perceptions of financial instruments in this case, Binary Option trading. To begin with, provide education and understanding of financial instruments and investments while dissecting the differences between them. A discussion is held of the fundamental and evaluate money in Binary Options trading, which is the cause of the disruption of the understanding of investment instruments in the social community. The authors evaluate the support factor of the social phenomenon of binary options which results in many material losses. Conclude what is happening in the social scope of Binary Option trading and provides suggestions and solutions and precautions for not to be unwanted. Essentially, this research aims to provide a true understanding of financial instruments, especially binary options that have been abused by many individuals during the discussion of binary options concept, as well as the strategy they employ to avoid the bandages of criminal law. This study utilizes the qualitative method of analysis based on literature reviews of several journals and case study analysis of events that have occurred in the social environment. Ultimately, it is expected that the results of this study will contribute to the development of educational development and increase awareness of Indonesian society.

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Section: Literature Reviewmentioning

confidence: 99%

“…In the buy or up option, the stake or wager will use the player's capital whereas the selling or down-to-choice option will be provided by the trader in the form of traded assets which will be taken in compensation if the player loses and added if the player gains [16].…”

Section: B Binary Option Market Type Classificationmentioning

confidence: 99%

The Effect of Binary Option Trading in Social Phenomenon: Indonesia Case

Putra¹,

Husien²,

Budiharseno³

2022

taiwanproceeding

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“…In this context, it is worth noticing a methodology for option pricing, applied in Li et al (2018), where a nonlinear fuzzy-parameter PDE model is built for obtaining option prices and dominating optimal hedging strategies are developed. Qin et al (2020) considered the fractional Brownian motion to model the stock price in the binary option pricing problem, taking into account the long memory property of financial markets. Furthermore, a new approach to valuation of portfolio and options in the Black-Scholes model in fuzzy environment, involving fuzzy geometric Brownian motion, fuzzy lognormal distribution, as well as fuzzy Ito integral, is discussed by Dash et al (2021).…”

Section: Pricing Derivatives In a Fuzzy Environmentmentioning

confidence: 99%

Stochastic approach to model spot price and value forward contracts on energy markets under uncertainty

Pawłowski

Nowak

2021

J Ambient Intell Human Comput

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The paper deals with a model of electricity spot prices. The proposed dynamics of electricity spot prices is driven by a mean reverting diffusion with jumps having hyperexponential distribution. The analytical formula for the forward contract’s price is derived in a crisp case. Inasmuch as the model parameters are considered to be evaluated imprecisely, their fuzzy counterparts are introduced. With usage of the fuzzy arithmetic, the analytical expression for the forward contract’s price is derived. Several numerical examples highlighting attributes of the fuzzy forward electricity prices are brought out.

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“…Based on pre-research observations, the author found that Alan Suryajana's YouTube channel contains content on tips for trading binary options to the achievements that have been obtained from trading. The binary option system is a new form of online business for profit, and has been known to the general public in Indonesia, where the majority of the population is Muslim, so it is necessary to make an analysis of the halalness of the system which is not yet widely available [5].…”

Section: Introductionmentioning

confidence: 99%

Juridical Analysis of Law Enforcement of Illegal Investment Affiliates in Indonesia

Hasbullah¹,

Mastiningrum²

2022

Proceedings of the 6th Batusangkar International Conference, BIC 2021, 11 - 12 October, 2021, Batusangkar-West Sumatra, Indones

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The goal of this study is to provide a legal analysis of Indonesia's law enforcement of illicit investment affiliates. By studying the appropriate legal provisions and what has occurred empirically in the field, this study employs a juridical-empirical method. Secondary legal sources are consulted. According to a review of legal sources, the affiliate or influencer who promotes the public to invest in illicit binary options violates sections of the Information and Electronic Transactions Law, the Criminal Code, and the Money Laundering Act (TPPU). According to several legal experts, affiliates or influencers who contribute material regarding gambling may be subject to Article 27 paragraph 2 of the Electronic Information and Transactions Law. Additionally, there is Article 28 paragraph 1 of the Electronic Information and Transactions Law, which criminalizes affiliates for disseminating false news that causes in financial losses for victims, who face a maximum term of 20 years.

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Fuzzy pricing of binary option based on the long memory property of financial markets

Cited by 13 publications

References 16 publications

The Effect of Binary Option Trading in Social Phenomenon: Indonesia Case

The Effect of Binary Option Trading in Social Phenomenon: Indonesia Case

Stochastic approach to model spot price and value forward contracts on energy markets under uncertainty

Juridical Analysis of Law Enforcement of Illegal Investment Affiliates in Indonesia

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