An option where the payout is predetermined and is not dependant on the price move of the underlying asset. Also known as a Digital option, and All-or-nothing option.
a financial instrument that pays a predetermined amount (payoff) if a specified outcome is achieved by the expiration date or pays nothing (risk) if the outcome is not met
an option with a fixed, predetermined payoff if the underlying instrument or index is at or beyond the strike at expiration
Is an option that has two outcomes. Generally, it is structured to pay a predetermined fixed amount when in the money or pay nothing when out of the money.
A type of option which features a discontinuous expiration value.
A type of option which features a discontinuous pay-off.
A binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security.