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The Components of a Binary Option

The Components of a Binary Option
This is a discussion on The Components of a Binary Option within the Stock Markets Tips & Gyan !! forums, part of the Quiz , Marketplace and Community games category; Like a standard vanilla American or European style option, binary options are defined in terms of a strike price (payout ...

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The Components of a Binary Option

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writer11

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The Components of a Binary Option - September 28th, 2009

Like a standard vanilla American or European style option, binary options are defined in terms of a strike price (payout threshold), a maturity date, and an underlying reference unit, commodity, instrument or security price (the underlying). Binaries are sold in exchange for an up front premium payment, just like other options. Both calls and puts are available.

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The Components of a Binary Option

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