Derivatives
Self-Referencing CDS
July 12, 2021
Derivatives
Binary Cap
July 12, 2021

An exotic option whose payout is equal to the value of the underlying asset if the price of the asset exceeds or falls below the exercise price at expiration. In either case, the option holder receives no payment. Depending on the asset price behavior with respect to the exercise price, the asset-or-nothing option comes in two categories: asset-or-nothing call and asset-or-nothing put.

This option is a type of a binary or digital option.

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