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A binary option is a financial exotic option in which the payoff is either some fixed monetary. Brokers sell binary options at a fixed price (e. g. , $100) and offer some fixed percentage return in case of in-the-money settlement. Some brokers, also.
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Jan 20, 2017. Delta of your binary call option is. Δ t = ∂ c t ∂ S t = e. . . out the delta at ATM. That's how the traders smoothen out the deltas of digital products while hedging.
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