作业帮银行range banary
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银行range banary
银行range banary
银行range banary
Range Binary Option
A Range Binary is a barrier option that is a combination of two double knock outs, both initially set in-the-money, with identical sets of barriers. The most common usage is in the form of a specified range defined within a given period, where the customer selects a premium amount and is assigned a gearing factor (or payoff ratio). A payment is made if spot does not trade at or beyond that specified range during the life of the option.
Example
A customer believes that EUR/USD will remain in the range of 0.8900-0.9600 over the next 3 months. He decides to invest €25,000 and receive a gearing factor of 4:1. (Spot Reference: 0.9250) If, at expiration, spot has not traded at or beyond either 0.8900 or 0.9600 during the life of the Range Binary, then the customer receives a payout of €100,000. If, at any time during the life of the Range Binary spot trades at or beyond either 0.8900 or 0.9600, then the customer forfeits the premium paid.
Range Binaries are generally suited for those looking to express a short volatility view but with limited risk, looking to capture a range bound spot market, or for those desiring to sell volatility but not allowed to be short options.