By Zvi Bodie, Alex Kane, Alan J. Marcus

I had used this booklet in the course of my MBA and located it rather complete at the theories of funding, e.g. CAPM, Portfolio thought and so on. i didn't purchase past, i wished a duplicate for my education for CPA.

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Peer to peer betting. Laying a bet is betting the event will not happen. Betting on losers has now become standard in all sporting events. Betting Exchanges Betting exchanges have revolutionized the world of betting. Until their arrival, the traditional bookmaker was king. Suddenly with the arrival of the betting exchange, peer to peer betting has become possible, and the traditional in built profit of the bookmaker hidden in the odds, is no longer relevant. The betting exchange now stands at the centre, matching the two parties together, in much the same way as a futures exchange does in the financial markets.

As you will discover later, to get time on our side it is a question of timing and the associated probabilities. Think of this in terms of betting in running where the favorite in a horse race is well ahead in the final furlong of the race. Here we are putting time on our side since there is little time left before the end of the race. It is the same with a binary option. If we are prepared to accept a very small return on the probability of an event happening, time in this case is working for us as the event is near to expiry.

So, why have I written a book on the subject? Let me draw a parallel here with the forex market which has many similarities. Ten years ago you would have been hard pressed to find a forex broker, let alone be able to place a trade easily. The internet changed all that, and the forex market was promoted as a ‘get rich quick’ scheme - no knowledge required. Gradually over the years, the retail trader and investor has become wise to the scams, sharp practice and over hyped marketing messages. The market has matured, aided by the regulatory authorities with traders of all levels becoming increasingly knowledgable.

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