Re: Referral option
Hi William,
A derivatives question? Nice.
If i understand correctly you are saying:
Given that the player's referral fee is worth 60-100 a month, how much is that worth as a one off price?
Obviously there is no Black-Scholes for this sort of thing....
But if we assume 4000 mgr as an average per month then that's 80 a month in fees or 960 a year.
put an arbritary multiple of 2.5 on it and call it $2400
Of course that assumes that the player continues to play.
Now this is all theoretical and we could have chosen 1.5 instead of 2.5
The problem is there is no guarantee that a player will play past the first week....so you would most likely be unable to find a buyer....
Any help?
Kind regards
RakeTheRake
|