Binary options u based

A binary option is a financial exotic option in which the payoff is either some fixed monetary. Binary options" are based on a simple 'yes' or 'no' proposition: Will an underlying asset be. [A] binary may be trading at $42. 50 (bid) and $44. 50 (offer) at 1 p. m. If you buy the binary option right then you will pay $44. 50, if you.