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Hey folks. Just wondering, what kinds of binary securities are there? That is, what securities have only two discrete pay-offs? Alternatively, are there portfolios of securities that can achieve such a result?
Ideally, is there a security that returns (net) 1$ with probability p, and -1$ with probability 1-p?
I am aware of binary options, but am wondering if there is something shorter-term. Edit: Or perhaps they are shorter-term than I thought? Somebody educate me.
Thanks!
Ideally, is there a security that returns (net) 1$ with probability p, and -1$ with probability 1-p?
I am aware of binary options, but am wondering if there is something shorter-term. Edit: Or perhaps they are shorter-term than I thought? Somebody educate me.
Thanks!
