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An American cash-or-nothing binary option is issued out-of-the-money and makes a fixed payment if the underlier value ever reaches the strike.

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A binary option (also known as all-or-nothing option) is a financial contract that entitles its holder to a fixed payoff when the event triggering the payoff occurs

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2017-12-06 · Binary call option - american binary option pricing: Financial Derivatives - Binomial Option Pricing - The One-Period Model Formula - Duration: 24:18.

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