American binary

The set condition may be, for example, that the market price of the underlying must reach or exceed a predetermined threshold or barrier, such as the exercise price. If the condition is met, the fixed amount on the binary option will be paid regardless of the spread between the market price of the underlying and the exercise price; the option need only be at the money or in the money at maturity or at the exercise date, as the case may be, for the stipulated amount to be paid; the option pays nothing when out of the money.