In Derivatives, When Would a Contract Use a "Request and Response" Model? ⎊ Path

In Derivatives, When Would a Contract Use a “Request and Response” Model?

A derivatives contract would use this model for settlement based on a specific, non-continuous event. Examples include an options contract settling at a precise expiration time or a binary options contract based on a discrete event outcome, like a company reaching a revenue milestone.

It is used when the final price or outcome is only needed once, at a pre-determined point in the future.

What Are Binary Options and Why Are They Considered High-Risk?

How Does the ‘Expiration Time’ of a Binary Option Relate to the Oracle’s Data Submission?

How Do ‘Binary Options’ Differ from Standard Options in Terms of Liquidity and Pricing?

In Which Scenarios Is a Custom Binary Protocol Superior to Standard Protocols for RFQ?

What Are the Performance Trade-Offs between Binary and Text-Based FIX Protocols?

What Is a ‘Binary Option’ and How Does It Differ from a Vanilla Option?

How Are Oracles Used to Settle Binary Options Contracts?

Could a Derivative Be Used to Speculate on a PoS Network’s Governance Outcome?