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Similarly, paying out 1 unit of the foreign currency if the spot at maturity is above or below the strike is exactly like an asset-or.
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The Black–Scholes /ˌblæk ˈʃoʊlz/ or Black–Scholes–Merton model is a mathematical model. The formula led to a boom in options trading and provided mathematical legitimacy to. . . a call option into the difference of two binary options: an asset-or-nothing call minus a. . " The Problem with Black, Scholes et al" (PDF).
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