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In the Black–Scholes model, the price of the option can be found by the formulas below. [27] In fact, the Black–Scholes formula for the price of a vanilla call option (or put option) can be interpreted by decomposing a call option into an asset-or-nothing call option minus a cash-or-nothing call option, and similarly for a put – the binary options are easier to analyze, and correspond to ...
A compound option is an option on another option, and as such presents the holder with two separate exercise dates and decisions. If the first exercise date arrives and the 'inner' option's market price is below the agreed strike the first option will be exercised (European style), giving the holder a further option at final maturity.
A binary decision is a choice between two alternatives, for instance between taking some specific action or not taking it. [1] Binary decisions are basic to many fields. Examples include: Truth values in mathematical logic, and the corresponding Boolean data type in computer science, representing a value which may be chosen to be either true or ...
Barrier option; Basket option; Bear spread; Binary option; Binomial options pricing model; Bjerksund and Stensland; Black model; Black–Derman–Toy model; Black–Scholes model; Black's approximation; Bond option; Boston option; Box spread; Bull spread; Butterfly (options)
Retrieved from "https://en.wikipedia.org/w/index.php?title=Binary_call_option&oldid=527342256"This page was last edited on 10 December 2012, at 12:25 (UTC) (UTC)
A political process to resolve more than a decade of conflict in Libya has been stalled since an election scheduled for December 2021 collapsed amid disputes over the eligibility of the main ...
At six grams per ounce, pistachios are packing tons of protein. They also are high in vitamin B6, which helps with brain development and immune system health, according to the Mayo Clinic. "Since ...
The intrinsic value is the difference between the underlying spot price and the strike price, to the extent that this is in favor of the option holder. For a call option, the option is in-the-money if the underlying spot price is higher than the strike price; then the intrinsic value is the underlying price minus the strike price.