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If we denote by S the FOR/DOM exchange rate (i. e. , 1 unit of foreign currency is worth S units of domestic currency) we can.
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A binary option is a financial exotic option in which the payoff is either some fixed monetary. . For example, with a win reward of 80%, out-of-money reward of 5%, and the option price of. In fact, the Black–Scholes formula for the price of a vanilla call option (or put. . Jump up ^" FMA Focus Binary Options and CFDs" ( PDF).
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