An option that pays off one unit of currency at expiry, in case of S T
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An option that pays off one unit of currency at expiry, in case of ST ≥ K, and zero else, is called a binary or digital call option. Likewise a binary put option pays one unit of currency, if ST < K holds, and nothing otherwise. Sketch the payoff function of a binary call and put.
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Rsquared or R2 explains the degree to which your input variables explai...View the full answer
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Dudhat Vaidehi
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