Common comparison error
Call or put wording in Cash or nothing option does not necessarily grant the conventional exercise right associated with Binary option.
GlossaryProducts & contracts
Cash-or-nothing option
A binary option that pays a fixed cash amount when its condition is met and zero otherwise.
Practical use
How to verify Cash-or-nothing option
Read Cash-or-nothing option together with Asset-or-nothing option, Binary option, All-or-nothing option. The comparison must preserve the exact rule, value, state, and evidence described below.
A neutral example
A settled Cash or nothing option omits the quote side used at expiry. Specification and source timestamp are obtained before classifying it against Asset or nothing option. The evidence must resolve the defining Cash or nothing option boundary: the successful state pays fixed cash and the unsuccessful state ordinarily pays zero.
Evidence path
Where to verify Cash-or-nothing option
Use the source that governs the exact contract, account, entity, or platform state. A general definition cannot replace current broker terms.