Nguyễn Hoàng Hải Phương - BAFNIU18240

Nguyễn Hương Giang - BAFNIU18264

1. Betting is the action of gambling money, possessions, time, or something else on the
outcome of something, such as a game or race. In other words, the act or practice of
playing games of chance for a stake; usually money. We can also, in most cases, use
the word ‘gambling’ with the same meaning.

The three main types of betting odds are fractional (British) odds, decimal (European) odds,
and American (moneyline) odds.

Fractional odds (aka British odds, UK odds, or traditional odds) are popular among British
and Irish bookies. Fractional odds are used by some of the world’s largest bookmakers,
making them the most preferred odds across the globe.A fractional listing of 6/1 (six-to-one)
odds would mean that you win $6 against every $1 you wager (in addition to receiving your
dollar back, i.e. $1 – the amount you wagered). In other words, this is the ratio of the amount
(profit) won to the initial bet, which means that you will receive your stake ($1) in addition to
the profit ($6), resulting in a total payout of $7. Therefore, if you stake $10 at 6/1, you get a
total payout of $70 ($60 profit + $10 stake)

Total Payout = [Stake x (Numerator/Denominator)] + Stake

where numerator/denominator is the fractional odd, e.g. 28/6.

Decimal odds (aka European odds, digital odds, or continental odds) are popular in
continental Europe, Australia, New Zealand, and Canada. These are a bit easier to understand
and work with. The decimal odds number represents the amount one wins for every $1
wagered. For decimal odds, the number represents the total payout, rather than the profit. In
other words, your stake is already included in the decimal number (no need to add back your
stake), which makes its total payout calculation easier

Total Payout = Stake x Decimal Odd Number

American odds (aka moneyline odds or US odds) are popular in the United States. The odds
for favorites are accompanied by a minus (-) sign, indicating the amount you need to stake to
win $100. Meanwhile, the odds for underdogs are accompanied by a positive (+) sign,
indicating the amount won for every $100 staked. In both cases, you get your initial wager
back, in addition to the amount won. The difference between the odds for the favorite and the
underdog widens as the probability of winning for the favorite increases

2. Derivative securities are instruments that are issued on the basis of existing
instruments such as stocks and bonds, for different purposes such as spreading risks,
protecting profits or creating profits. Currently, the derivative market is still small
compared to developed countries in the world. Up to now, there are 2 main trading
tools in the Vietnam market: “Future contract” and “covered warrant”.

Future contract: agreement between parties on purchase and sale obligations that must be
performed at a price determined for the future regardless of the market value at that time.
VN30 -Index Futures Contract (VN30F) is the first derivative securities product on the
Vietnamese market. Index futures on VN30 has the underlying asset of VN30-index, which
imitates the expected price of VN30 index at the expiration time. Index futures on VN30
traded with 4 contracts which is equivalent to 4 expiration months: current month, next
month, and next two quarterly months. VN30 index is calculated based on prices of 30 stocks
which have the largest market-capitalization and liquidity and are traded in HCM stock
exchange.

The government bond futures contract, the second derivatives market product in Việt Nam
since the index futures in August 2017. The government bond futures contract has underlying
assets as a hypothetical five-year government bond issued by the State Treasury which is said
to have large listing volume and higher liquidity than other types of bonds. In the early stage,
this product is only traded by institutional investors. — VNS

Covered warrants are products issued by securities companies and listed on the Ho Chi Minh
City Stock Exchange (HOSE). Investors pay fees to the securities companies to be entitled to
buy underlying securities at a predetermined price and time. A covered warrant is a security
that gives the holder the right to buy or sell an underlying asset at a specified price on or
before a specified date. Unlike futures, it does not obligate the holder to transact an asset at a
predetermined future date and price.

Covered warrants are listed on major Asian exchanges such as Hong Kong, Taiwan and
South Korea. They are called "covered" warrants because when an issuer sells a warrant to an
investor, it will usually hedge, or "cover" its exposure by buying the underlying asset in the
market.

Warrants are like options because the contracts represent the right, but not the obligation, to
buy or sell an underlying asset. The structure of CW are:
● Issue price: The amount the investor pays to own the warrant.
● Settlement price: Average price of 5 trading sessions before the maturity date
of underlying securities.
● Strike price: A predetermined price at the time of purchase of the warrant and
does not change over time.
● Conversion rate: the number of CWs that investors need in exchange for an
underlying stock. For example: the rate is 2:1
● Exercise type: there are 2 types: European and American style. In the first
stage in Viet Nam, the only European-style exercise is the maturity date.
● Lifespan of CW: 3 months, maximum: 24 months.