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Binary Option

   Also found in: Wikipedia 0.01 sec.
Binary option
An option where the payoff is a fixed amount of an asset or nothing at all.

Binary Option
An option contract in which the payoff is some set price or nothing. For example, suppose the strike price on a binary option is $100 and the payoff is $250. If the underlying asset is above $100 when the option is exercised, one receives $250. Otherwise, one does not receive anything. A binary option is also called an all-or-nothing option. See also: Exotic option.


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Recently, day trading binary option is highly preferred for quick profits.
Taxpayers are economically better off having won the money associated with the settling of a binary option.
1]>1: [FIGURE 9 OMITTED] [FIGURE 10 OMITTED] [FIGURE 11 OMITTED] [FIGURE 12 OMITTED] The binary option to replicate has the same form as in Roy case (with the same parameters values).
 
 
 
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