While binary options may be used in theoretical asset pricing, they are prone to fraud in their applications and hence banned by regulators in many jurisdictions as a form of gambling.[1] Many binary option outlets have been exposed as fraudulent.[2] The U.S. FBI is investigating binary option scams throughout the world, and the Israeli police have tied the industry to criminal syndicates.[3][4][5] The European Union is publishing regulations that will ban binary options trading.[6] ASIC considers binary options as a “high-risk” and “unpredictable” investment option.[7]