Binary option
(redirected from All-or-Nothing Options)Binary option
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved