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.

Binary Options

Financial instruments that pay out either a fixed amount or nothing at all, depending on whether a certain condition is met at expiration, typically related to the price movement of a security.

Fixed Amount

A fixed amount refers to a specific quantity or sum of money that does not change over time, often used in financial contexts like investments, payments, or fees.

Specified Event

An occurrence or situation outlined within a contract that triggers certain actions or conditions, often used in insurance and derivatives contracts.