Binary option and Notional pooling: Difference between pages

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imported>Doug Williamson
(Create the page. Sources: The Handbook of International Financial Terms; Investopedia http://www.investopedia.com/terms/b/binary-option.asp)
 
imported>Doug Williamson
m (Category added 9/10/13)
 
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A binary option is one which pays out either a fixed amount, or nothing, depending on the price of the underlying asset at the maturity date.
''Banking''. 
 
The technique used by banks for calculating interest on balances in a notional cash pool.
 
Excess funds in the accounts of a company or its subsidiaries are used to offset deficits in other company accounts for the purpose of determining interest earned or owed.
 
Notional pooling is also referred to as interest offset pooling.




== See also ==
== See also ==
* [[Call option]]
* [[Cash pool]]
* [[Digital option]]
* [[Cross-guarantees]]
* [[Exotic option]]
* [[Interest rate enhancement]]
* [[Option]]
 
* [[Put option]]
[[Category:Long_term_funding]]
* [[Underlying asset]]
[[Category:Cash_management]]

Revision as of 09:54, 9 October 2013

Banking.

The technique used by banks for calculating interest on balances in a notional cash pool.

Excess funds in the accounts of a company or its subsidiaries are used to offset deficits in other company accounts for the purpose of determining interest earned or owed.

Notional pooling is also referred to as interest offset pooling.


See also