The Chicago Board of Trade’s Binary Options on the Target Fed Funds Rate (Fed Binaries) allow you to express your views on upcoming Fed policy decisions.

• Binary put buyers collect $1,000 any time the post meeting target rate (expressed in 100 minus rate terms) is less than the strike price bought. In all other cases, they collect $0.00.
• Binary put sellers must pay $1,000 any time the post meeting target rate (expressed in 100 minus rate terms) is less than the strike price sold. In all other cases, they pay $0.00.

 - Trading Fed Binary Call Options - 03.28.2007