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OverUnder (Binary options)
The following is a brief description of binary options - OverUnder. For a detailed contract specification, please consult chapter four in the Rules and Regulations for NASDAQ OMX Derivatives Markets, which is available here on the website.
OverUnder - Binary options
Facts
| Over (binary call option) |
Value = 1 if the closing price for the underlying share/index is higher than the strike price. For all other closing prices, value is 0.
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UNDER (binary put option) contract value at expiry
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Value = 1 if the closing price for the underlying share/index is lower than the strike price. For all other closing prices, value is 0.
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| Currency |
Same as underlying instrument |
| Settlement method |
Cash settlement |
| Settlement day |
T 1 |
| Expiration day |
Same as standard options on the underlying instrument in question. |
| Contract length |
Up to 3 months |
| Contract size / Multiplier |
1 (i.e. buying 1000 contracts at 0.50 SEK gives an invested amount of 500 SEK) |
| Minimum trading size per order |
1 contract |
| Maximum trading size per order |
50 000 contracts |
| Margins |
According to the Exchange’s current margining methodology. |
| Series name (examples) |
(Underlying / Year / Month / Day / BinaryOverUnder / Strike price)
Example 1: ERICB1A21BO75
Example 2: OMXS301M21BU1000
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Binary Options is available for the following underlying shares/indexes
OMXS30 index
Ericsson B
Nokia sdb (SEK)
TeliaSonera
Hennes & Mauritz B
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