They open a portal Serah can use to find Noel in his dream world and save him before he becomes trapped in it forever. They'll need schools and teachers, right? Due to the timeline being corrupted Lightning is removed from history and only Serah remembers her ever returning to Gran Pulse's surface with them. A binary call option is, at long expirations, similar to a tight call spread using two vanilla options. Yeul appears and gives Serah a cryptic message, saying they are the same in how they can "show others the way".
Serah is a strict grade school teacher with a short temper, and like Lightning, can be scary when angered, which earned her the nickname "Meanie Miss Farron". Serah can hold her own in battle despite not having much prior experience in combat. She is determined to save the future despite learning of the peril it could put her in. Serah was born three years after her elder sister, Claire.
Their father died when they were young and they lost their mother to an unknown illness when Serah was twelve. With no other family to turn to, Claire took it upon herself to raise Serah and changed her name to "Lightning". Since then, Serah has looked up to Lightning as her guardian. After Lightning graduated from high school and joined the Guardian Corps Bodhum Security Regiment she began to lose sight of her goals, and worked many hours while spending little time with Serah.
Serah was planning to attend the university in Eden when she fell in love with Snow during summer vacation, much to Lightning's dismay. From a young age, the local landmark, the Pulse Vestige , caught her attention and made Serah interested in studying history. One day, Serah visits the Vestige and finds a door leading inside the Vestige and ventures into the ruins, where she is chosen by the Pulse fal'Cie , Anima that was entombed within the Vestige.
Serah is branded a l'Cie and dreams of transforming into Ragnarok and destroying Cocoon, but does not realize it is her Focus. She wakes up outside of the Vestige and notices the l'Cie brand on her arm. She frantically tries to rub it off but, affected by her fear, the brand evolves and Serah walks off crying. Four days later, Serah tells Snow she had been branded a Pulse l'Cie and tries to break up with him, but Snow refuses to abandon her and offers to aid her in figuring out her Focus.
Two days later, Serah befriends a girl she aids on the beach, named Vanille. Listening to Vanille's problem, Serah advises her to face it later and look at it from a distance to find a way to overcome it. She tells Vanille about her nightmare of destroying the world and how she tried to run from it, but now knows she will get through with her friends' help. Since it was her fault Serah was made a l'Cie, Vanille apologizes but Serah, not knowing of Vanille's involvement, does not understand.
The next day, Serah goes out to the shopping mall with Snow to find a birthday present for Lightning. Serah buys a survival knife to keep Lightning safe while she is on duty, while Snow slips away and buys two engagement necklaces. The night after, Serah and Snow attend the fireworks festival where Snow proposes to her and she accepts. On Lightning's birthday the following day, Serah and Snow tell Lightning about her becoming a l'Cie, and their engagement, but Lightning believes Serah is lying as an excuse to marry Snow.
Serah tells Lightning to save Cocoon and crystallizes , leaving behind a crystal tear for Snow. Snow believes Serah will awaken, but Lightning believes her to be dead. Serah becomes part of the crystallized lake and the others abandon Snow, who stays behind to try and free her. She is brought aboard the Lindblum along with Snow when he is captured by Fang and Cid Raines 's troops, the Cavalry , a rogue army regimen that seeks to free Cocoon from the fal'Cie rule.
What happens to Serah's crystal from now on is unknown, but Snow and Fang rendezvous with the other l'Cie, forcing Snow to leave Serah behind.
On the Palamecia , the Cocoon fal'Cie's leader Barthandelus tells the group that Serah's Focus was to "assemble the tools for Cocoon's destruction", or lure them inside the Vestige to be branded l'Cie with the task of destroying Cocoon. This revelation cripples Snow, who until that point had believed their Focus was to save Cocoon as Serah asked.
After defeating Cid Raines in the Fifth Ark , revealed to be a l'Cie branded by Barthandelus, and observing him enter crystal stasis despite going against his Focus, Snow emerges from his depression and vows to follow Serah's wish to save Cocoon.
In Oerba , Barthandelus uses Serah's guise to try and trick the party into turning into Ragnarok, but they see through the illusion. As the party returns to Cocoon and treks through Eden, Barthandelus tells them he is holding Serah and Sazh's son, Dajh , hostage.
After Orphan is destroyed and Vanille and Fang transform into Ragnarok to halt Cocoon's descent by forming a crystal pillar to support it above Pulse, Serah wakes up from crystal sleep and reunites with Snow and Lightning. Serah forgives Lightning for not believing her and Snow begins to plan for their wedding, with Lightning congratulating the pair.
Serah and Snow talk about rebuilding on Gran Pulse and saving Vanille and Fang, who remain crystallized within the pillar. Serah asks Vanille what she is dreaming about in her crystal sleep, revealing she knows about Snow staying with her at Lake Bresha since he carried her crystal tear, enabling her to hear him and see what he saw. Serah theorizes the dreams people have in crystal stasis vary, since Dajh told her about his dream of playing with chocobos.
Serah decides to become a school teacher and educate children on why Cocoon fell. She wants to tell them their side of the story and help them grow into adults who can think for themselves. Shortly after, she discovers Lightning is nowhere to be seen. Due to the timeline being corrupted Lightning is removed from history and only Serah remembers her ever returning to Gran Pulse's surface with them.
In the two years after Lightning's disappearance, with help from the Cavalry, Bodhum's former residents build the Pulsian village of New Bodhum and some learn to use magic , including Snow and Serah. Serah learns how to fight with weapons and discovers she has more fighting prowess than she knew. Although Serah becomes a teacher like Lightning was to her to teach the children how to protect and think for themselves, deep inside, she feels unable to move forward, haunted by her memory of the day Lightning vanished and how everyone thinks she is making things up to avoid facing reality.
One day, Snow tells Serah he believes her about Lightning still being alive and sets out to search for her. Serah wants to go with him, but Snow insists she stay for the sake of her students. Giving Serah his engagement pendant as the symbol of his promise to return with Lightning, Snow departs, but a year goes by and Serah never hears back from him. One night, Serah dreams of Lightning fighting a mysterious man within a strange world.
A crystal meteorite crashes outside of New Bodhum and she awakens finding herself in new clothes. The town is ravaged by monsters and Serah is saved by Noel Kreiss, the boy she saw in her dream.
He gives her a moogle that can transform into a weapon and says Mog is a gift from Lightning, who now resides in Valhalla , the middle world between the realm of the living and the unseen realm of the dead, and that she has asked him to bring Serah there. The meteorite is actually a Time Gate , and the next day Serah and Noel search the town for an artefact to activate it.
Serah learns Noel is the last human left from the end of the world, and after praying to create a brighter future, Lightning gave him the chance. The ruins are affected by a paradox that causes a giant monster known as Atlas to appear in the area. While activating another gate in the area, Serah has a vision of Ragnarok crystallizing Cocoon but hides this from Noel.
Their next destination, the Yaschas Massif in 10 AF, is darkened by a solar eclipse due to a paradox. They meet an adult Hope Estheim who tells them a tribe of Farseers ruled by a seeress named Yeul used to live in the ruins. He says the seeress could see the future and foretold the nation's destruction, causing its downfall. Hope shows them the Oracle Drive , which shows grainy images of Lightning in Valhalla.
Hope believes the paradox affecting the area is also affecting the Oracle Drive, and gives Serah and Noel an artefact to help them resolve the problem. They are interrupted by the seeress Yeul and her Guardian , Caius Ballad , whom Serah recognizes as the man she saw battling Lightning in her dream. After Caius battles Noel and Serah, Yeul stops Caius from killing them, and warns them that changing the future also changes the past.
Yeul appears and gives Serah a cryptic message, saying they are the same in how they can "show others the way". Serah and Noel repeat their introduction to Hope, who shows the now clear images of Lightning in Valhalla with the Oracle Drive. The Oracle Drive shows images of Cocoon falling at Caius's hand, and Noel says the crystallized Cocoon fell centuries before his birth, and the world fell into ruin. Serah says they must change the future and Hope decides to help them with everything he and the Academy do in the present time.
As Serah despairs if they will ever find Lightning, Noel reassures they are one step closer to her with each Time Gate they pass through. Traveling to the Sunleth Waterscape AF, Serah clutches her head in pain and recites Yeul's prophecy of Cocoon's fall as though possessed. She has a vision of Snow about to be killed by a giant flan , runs off and finds Snow half-conscious before Noel comes to their aid, and they fight off the flan together.
As the flan reforms, Serah pulls a resistant Snow to safety. She introduces Noel and Snow to each other before explaining to the latter why they are there.
Snow explains he has also become a time traveler, and says Lightning appeared to him in a dream telling him to protect Cocoon's crystal pillar from the giant flan, and Serah and Noel decide to help him by resolving the paradox that makes the flan grow.
Noel and Serah journey to the Coliseum and receive a fragment from the Arbiter of Time. AF and stop Royal Ripeness from growing, they return to the Sunleth Waterscape and find Snow struggling in front of the giant flan despite having promised to wait for their return. After defeating it for good Snow entrusts Serah's safety to Noel and disappears as the paradox affecting the area has been resolved, but Serah notices a Pulse l'Cie brand on his arm before he fades away.
Serah decides it is her turn to save Snow. Back in the Void Beyond, Noel explains the Farseer tribes always had a girl with the same appearance and power who is always called Yeul, and Caius is her Guardian. They are confronted by what appears to be Caius, who threatens to kill them for tampering with the timeline. Caius says they were killed as a result of learning a forbidden history sealed within a tower two hundred years ago and have now appeared before him alive, a paradox in itself.
Serah and Noel find Yeul under attack by Cie'th. Yeul said Caius wasn't in the city, leading Serah to wonder if she and Noel met an impostor. They meet an artificial duplicate of Alyssa and learn that Hope, Alyssa and other scientists were killed in the tower years ago at 13 AF, and duplicates of them were created to hide the truth. On the tower's top level they find Yeul who gives them an artefact and implores them to protect time. She reveals Caius is an immortal Guardian who retains memory of all timeline events, and says Lightning disappeared because the future had changed, and if Serah and Noel solve the paradoxes the past will return to how Serah remembers it.
Yeul explains the Caius from Academia was a deception made by a sentient machine within the tower, then implores they show her a new future. Noel, Mog and Serah enter a battle against the Proto fal'Cie Adam who keeps reviving itself whenever defeated. Serah charges Adam while shouting at Hope about his machines "driving her nuts", and just before she impales Adam's crystal, the fal'Cie disappears into thin air.
Serah has a vision of the future and blacks out, but Noel brings her back. Hope had devised the New Cocoon Project before he and Alyssa went into the future in a time capsule he invented. Hope explains his man-made Cocoon will be made airborne through the use of Graviton Cores. After bringing Hope the cores needed Alyssa gives Serah and Noel an artefact to open a new gate in the city. Manipulated by Caius, Alyssa gave them a booby-trapped artefact to save herself from disappearing due to being a paradox herself.
Finding several apparitions of Yeul from various points in time Serah learns Yeul is a seeress chosen by the goddess Etro , the goddess of death who resides in Valhalla, the middle world between the visible and unseen realms. Serah learns the goddess released her and the others from crystal stasis on the Day of Ragnarok. The last Yeul warns Serah that she brings herself closer to death the more she changes the timeline before transforming into Caius, who forces Serah into a battle.
Caius reveals it was the miracle Etro gave to Serah and the others that condemned Yeul, and that he plans to destroy time itself and send everything back to Valhalla where time does not exist, thus freeing Yeul from her curse. Caius impales Serah from behind, spilling chaos from her body. When she finds Snow, he claims Lightning has been living with them ever since they got married. Serah finds Lightning on the pier who says Serah changed history, making it possible for her to come back.
Serah almost believes her, but remembers the real Lightning is fighting in Valhalla and needs her help, and that she can't abandon Noel and her friends. Serah refuses to comply and Lightning is engulfed in chaos, a mysterious substance of the unseen realm that humans possess in their hearts. Hearing a familiar voice, Serah encounters Vanille and meets Fang, who have come to help Serah escape her dream world.
They open a portal Serah can use to find Noel in his dream world and save him before he becomes trapped in it forever. Serah emerges in a desolate world and finds Noel who does not acknowledge her. Realizing she is in Noel's dream, Serah follows him as he interacts with Caius and Yeul and witnesses a duel between Noel and Caius where the latter emerges the victor.
Serah sees Yeul die in Noel's arms, leaving him alone. As he is being pulled off the ground towards a light in the sky, Serah grabs hold of his arm and calls out to him and he remembers her, waking him from his dream. Noel tells Serah if they change history in a big way it will cost Serah her life, because Serah is a seeress like Yeul.
Serah chooses to continue as it is what Lightning wants, and if they fix the timeline quick enough she won't have to see the future any further. Mog's soul is freed from the Void Beyond by Lightning, and he brings new information from her about Caius. Caius used to be a Pulse l'Cie tasked with the Focus of protecting Yeul until he was saved by Etro and made immortal. From watching over the seeresses for centuries, Caius has been using his power and knowledge of their visions to warp the timeline as he pleases.
They come out of a space-time distortion into New Bodhum in AF, which is now a wasteland. Serah opens a portal on the beach and Lightning emerges before them, saying they are in a future she failed to save. After Lightning explains everything to them, Serah theorizes Caius's plan is to turn the world into a timeless world like Valhalla to break Yeul's cycle of rebirth.
Lightning says they will need to go to the year AF where Caius plans to destroy both the old and new Cocoons. She has Mog reveal a new Time Gate and as Lightning leaves, Serah asks if they will be together once everything is over, but Lightning only says, "One thing at a time, Serah. Will an underlying asset be above a certain price at a certain time? If a customer believes the price of an underlying asset will be above a certain price at a set time, the trader buys the binary option, but if he or she believes it will be below that price, they sell the option.
Investopedia described the binary options trading process in the U. This is called being "in the money. This is called being "out of the money. The bid and offer fluctuate until the option expires. You can close your position at any time before expiry to lock in a profit or a reduce a loss compared to letting it expire out of the money.
In the online binary options industry, where the contracts are sold by a broker to a customer in an OTC manner, a different option pricing model is used. Brokers sell binary options at a fixed price e. Some brokers, also offer a sort of out-of-money reward to a losing customer. On non-regulated platforms, client money is not necessarily kept in a trust account, as required by government financial regulation , and transactions are not monitored by third parties in order to ensure fair play.
Binary options are often considered a form of gambling rather than investment because of their negative cumulative payout the brokers have an edge over the investor and because they are advertised as requiring little or no knowledge of the markets.
Gordon Pape , writing in Forbes. Pape observed that binary options are poor from a gambling standpoint as well because of the excessive "house edge". Let's say you make 1, "trades" and win of them. In other words, you must win Commodity Futures Trading Commission warns that "some binary options Internet-based trading platforms may overstate the average return on investment by advertising a higher average return on investment than a customer should expect given the payout structure.
In the Black—Scholes model , the price of the option can be found by the formulas below. This pays out one unit of cash if the spot is above the strike at maturity. Its value now is given by. This pays out one unit of cash if the spot is below the strike at maturity. This pays out one unit of asset if the spot is above the strike at maturity. This pays out one unit of asset if the spot is below the strike at maturity. The price of a cash-or-nothing American binary put resp.
The above follows immediately from expressions for the Laplace transform of the distribution of the conditional first passage time of Brownian motion to a particular level. 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 nothing call and put respectively.
The Black—Scholes model relies on symmetry of distribution and ignores the skewness of the distribution of the asset. The skew matters because it affects the binary considerably more than the regular options. A binary call option is, at long expirations, similar to a tight call spread using two vanilla options.
Thus, the value of a binary call is the negative of the derivative of the price of a vanilla call with respect to strike price:. Skew is typically negative, so the value of a binary call is higher when taking skew into account.
Since a binary call is a mathematical derivative of a vanilla call with respect to strike, the price of a binary call has the same shape as the delta of a vanilla call, and the delta of a binary call has the same shape as the gamma of a vanilla call. Many binary option "brokers" have been exposed as fraudulent operations. Manipulation of price data to cause customers to lose is common.
Withdrawals are regularly stalled or refused by such operations; if a client has good reason to expect a payment, the operator will simply stop taking their phone calls.
In Israel, where a high concentration of such firms can be found, binary options trading was prohibited for Israeli customers in March on the grounds that it is a form of gambling and not a legitimate investment technique. On June 18, , a ban on marketing binary options to customers outside of Israel was passed by the cabinet.
In August , Belgium's Financial Services and Markets Authority banned binary options schemes, based on concerns about widespread fraud. No firms are registered in Canada to offer or sell binary options, so no binary options trading is currently allowed. Provincial regulators have proposed a complete ban on all binary options trading include a ban on online advertising for binary options trading sites.
The effect is that binary options platforms operating in Cyprus, where many of the platforms are now based, would have to be CySEC regulated within six months of the date of the announcement.
In , CySEC prevailed over the disreputable binary options brokers and communicated intensively with traders in order to prevent the risks of using unregulated financial services. CySEC also issued a warning against binary option broker PlanetOption at the end of the year and another warning against binary option broker LBinary on January 10, , pointing out that it was not regulated by the Commission and the Commission had not received any notification by any of its counterparts in other European countries to the effect of this firm being a regulated provider.
OptionBravo and ChargeXP were also financially penalized. The AMF stated that it would ban the advertising of certain highly speculative and risky financial contracts to private individuals by electronic means. The French regulator is determined to cooperate with the legal authorities to have illegal websites blocked.
This ban was seen by industry watchers as having an impact on sponsored sports such as European football clubs. In March binary options trading within Israel was banned by the Israel Securities Authority , on the grounds that such trading is essentially gambling and not a form of investment management.
The ban was extended to overseas clients as well in October In The Times of Israel ran several articles on binary options fraud. Israel's vast, amoral binary options scam exposed" revealed that the industry is a scam. The companies were also banned permanently from operating in the United States or selling to U. The CEO and six other employees were charged with fraud, providing unlicensed investment advice, and obstruction of justice.
On May 15, , Eliran Saada, the owner of Express Target Marketing , which has operated the binary options companies InsideOption and SecuredOptions, was arrested on suspicion of fraud, false accounting, forgery, extortion , and blackmail. In August Israeli police superintendent Rafi Biton said that the binary trading industry had "turned into a monster". He told the Israeli Knesset that criminal investigations had begun.
They arrested her for wire fraud and conspiracy to commit wire fraud. This required providers to obtain a category 3 Investment Services license and conform to MiFID's minimum capital requirements ; firms could previously operate from the jurisdiction with a valid Lottery and Gaming Authority license. In April , New Zealand 's Financial Markets Authority FMA announced that all brokers that offer short-term investment instruments that settle within three days are required to obtain a license from the agency.
Entrepreneur's goal is not to avoid complaints, but avoiding complaints that have nothing to do with the preferences of the complaining client. The Isle of Man , a self-governing Crown dependency for which the UK is responsible, has issued licenses to companies offering binary options as "games of skill" licensed and regulated under fixed odds betting by the Isle of Man Gambling Supervision Commission GSC.
On October 19, , London police raided 20 binary options firms in London. Fraud within the market is rife, with many binary options providers using the names of famous and respectable people without their knowledge. In the United States, the Securities and Exchange Commission approved exchange-traded binary options in On the exchange binary options were called "fixed return options" FROs ; calls were named "finish high" and puts were named "finish low".