59 for 2 Gu are kings of choccie puds so this vanilla option
makes a nice change.
Even if the required options are traded, there are vanilla option
bid-ask spreads that need to be factored in.
A Binary Touch Option differs from a plain Vanilla Option
in that the potential gains and losses of a Binary Touch Option position is known upfront, thus greatly simplifying the transaction.
First, the models under consideration are calibrated to the observed cross-sectional vanilla option
prices and the resulting models are used to set up replicating portfolios for other options at the same time.
As with the vanilla option
, the premium would be lost if the underlying was above the upper strike at expiration.
With the firm's new FX options electronic trading platform, it can even quickly and effectively execute vanilla option
The combination of lower prices, extended payment plans and entry into developing areas has forced investors to take opportunistic bets in the off-plan market compared to the plain vanilla options
in the ready space," says Hussain Alladin, head of IR and research at Global Capital Partners.