A "bet" option is also called a ________ option.
A) barrier
B) lookback
C) digital
D) foreign exchange

Question

Quizplus · Accepted Answer

A "bet" option is another name for a digital option. This option either pays out a fixed amount or nothing at all, depending on whether an underlying asset reaches a certain price level (i.e. "betting" on the market). Barrier options involve a certain price level as well, but the payout depends on whether the price level is breached or not. Lookback and foreign exchange options are different types of options altogether.

A "Bet" Option Is Also Called a ________ Option