An opposite type of touch option (and a binary option) that pays a fixed amount if the underlying price never trades at or beyond the touch-level and nothing if it does. This option allows traders to bet that the underlying price will not touch (or break through) the target price (that is usually set by a broker), but will remain below or above that level over the term of the option.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Comments