The payoff of binary options differ from those of everyday options. Binary options either have a superb payoff or none. In the case of a binary call, if the charge at a positive date, ST, is greater than or same to a strike price K, it’ll generate a payoff Q. Notice, that it does not matter whether or not the choices future inventory price just equals the strike, is relatively larger or lots large. Thus as long as the choices stock fee is greater than or identical to K, the payoff of a binary does now not exchange.
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