Binary options
A) are based on two possible outcomes-yes or no.
B) may make a payoff of a fixed amount if a specified event happens.
C) may make a payoff of a fixed amount if a specified event does not happen.
D) may make a payoff of a fixed amount if a specified event happens and are based on two possible outcomes-yes or no.
E) All of the options are correct.

Question

Quizplus · Accepted Answer

Binary options are financial instruments that provide a fixed payoff if a specified event occurs (or does not occur), based on a simple yes/no proposition, which aligns with all the statements provided.

Binary Options