Avik’s Ruminations

Musings on technology and life by Avik Sengupta

Fed Fund Binary Options

without comments

J R Varma has a commentary on CBOT’s new “Fed Fund Binary Options“:. There’s been an “FT article“: yesterday on these.

The interesting bit is, the underlying risk can sometimes be discontinous if you believe Fed Fund target as a driver of risk appetite in other markets. This makes the discontinous and unhedgeable greeks of binary options moot.

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August 8th, 2006 at 7:21 pm