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Binary Option : A First Attempt
Issued on June 27 2011 par Strategies-options.com
Binary options provide discret payoffs
Binary options differ from vanilla options in a way that they provide limited and discret payoffs.
■ There are binary calls and binary puts.
The payoff would be 1 if the option is in the money, 0 else.
It doesn't matter if the spot is way above the strike for a call or just 1 cent. If it's in the money, the payoff is max.
Graphs

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Other Derivatives - INDEX
Other Derivatives - CHAPTER I
Other Derivatives - CHAPTER II
Other Derivatives - CHAPTER III
Other Derivatives - CHAPTER IV Strategies-options.com
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