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
Check financial credit score free
need a lot more detail.
Check TRW score free
Please go to this link –
How Binary Options Work at Financial-edu.com
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.
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.
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
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.