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Intrinsic value is the difference between the strike price and the share price, if the stock price is above the strike.
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In calculating the value at the next time step calculated—i. As this Demonstration shows, the price of binary options—and its derivative with respect to the various model inputs—displays some interesting differences compared to the more well-known behavior of European options.
Monitor pricing and risk for Asian and European currency options portfolios in New York hours.
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