The Chicago Board Options Exchange (CBOE) will add five new credit event binary options (CBEOs) on financial firms. The firms whose credit is referenced by the new binary options are Bank of America, JP Morgan Chase, Citigroup, Goldman Sachs Group and Morgan Stanley. As per the new contracts, a buyer will get $1,000 per contract if a relevant company files for bankruptcy protection prior to the expiration of the contract in December 2011, December 2012 or December 2013. CBOE rolled out its binary options in March with 10 companies, including AK Steel, Advanced Micro Devices, Meritor and American Axle & Manufacturing.
Click here for the release from CBOE.