Pricing a Binary Option?
annielhy1009 asked:
Can anyone tell how can I price a binary option which is linked to 3 underlying indices, and gives a fixed payoff whenever the worst-of them hit the strike?
Portfolio challenge strategy
Sphere: Related ContentCan anyone tell how can I price a binary option which is linked to 3 underlying indices, and gives a fixed payoff whenever the worst-of them hit the strike?
Portfolio challenge strategy











February 28th, 2010 at 11:22 pm
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need a lot more detail.
March 1st, 2010 at 2:34 pm
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Please go to this link -
How Binary Options Work at Financial-edu.com
Strike Price
The stated price per share for which underlying stock may be purchased (for a call) or sold (for a put) by the option holder upon exercise of the option contract.
Notes:
When you exercise your option, this is the value that you get the shares for. Option strike prices typically increment $2.50 or $5.00.
Strike price
The stated price per share for which underlying stock may be purchased (in the case of a call) or sold (in the case of a put) by the option holder upon exercise of the option contract
strike price
The exercise price at which the owner of a call option can purchase the underlying stock or the owner of a put option can sell the underlying stock.