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A binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of binary options are the cash-or
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However, the situation becomes much more complex with American options, when the option can be exercised at any point until maturity. The binomial tree would factor
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What You Need To Know About Binary Options The example above is for a typical high-low binary option – the most common type of binary option – outside