These types of options are different from plain vanilla options
Also sometimes referred to as "all-or-nothing options" or "digital options".
For example, suppose you were interested in buying binary call options for common shares of ABC company with a strike price of $50 per share and a specified binary payoff of $500. If the stock is trading above $50 when the expiration date is reached, you would receive the $500 payoff for your option contract. However, if the stock is trading below $50 per share at the expiration date, you receive nothing.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
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