DESCRIPTION, PRICING AND APPLICATIONS OF SELECTED “ALL OR NOTHING” OPTIONS Cover Image

CHARAKTERYSTYKA, WYCENA I ZASTOSOWANIA WYBRANYCH OPCJI TYPU "WSZYSTKO ALBO NIC"
DESCRIPTION, PRICING AND APPLICATIONS OF SELECTED “ALL OR NOTHING” OPTIONS

Author(s): Monika Krawiec
Subject(s): Business Economy / Management, Socio-Economic Research
Published by: Szkoła Główna Gospodarstwa Wiejskiego w Warszawie
Keywords: standard and modified “cash-or-nothing” options; option pricing; over-the-counter market; fraudulent practices;

Summary/Abstract: Binary options, referred to as “all-or-nothing” options, became popular among traders because of their simplicity. These contracts are also combined with other exotic options to develop modified binary options such as correlation binary options or barrier binary options. With growing popularity of binary options the number of Internet-based trading platforms offering the opportunity to purchase and trade binary options has surged in recent years. It resulted in the number of binary options fraudulent practices to generate ignorant traders’ losses. This paper is aimed at providing the description of standard and modified “cash-or-nothing” options, methods for their pricing, exemplificatory applications and threats related to the over-the-counter trade in binary options.

  • Issue Year: XXIV/2023
  • Issue No: 2
  • Page Range: 92-104
  • Page Count: 13
  • Language: Polish
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