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A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of binary options are the cash-or

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A call option, often simply labeled Since the payoff of purchased call options increases as the stock price rises, Put option; Binary option; Bond option;

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Delta of binary option. will cause the option payoff to change its value by \$1 option is like the normal distribution probability function ,

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A binary option (also known as all-or-nothing option) is a financial contract that entitles its holder to a fixed payoff when the event triggering the payoff occurs

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Lecture 6: Option Pricing Using a One-step • can handle any payoff functions value to begin with as the ﬁnal payoff • replicate the option by a

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Appendix I PAYOFF FUNCTIONS FOR VARIOUS OPTIONS w is the option binary operator (1 for a call option and -1 for a put option), 0 is the direction binary operator (1

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Details about Binary Options Payoff Functions Continuing further from our previous article on Binary Options Example Explained, here we present the Payoff Functions

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Payoff. Binary options, otherwise known as Digital options or just Binaries or Digitals, are one of the primitive option types. Digital calls are sometimes called