Abstract: Financial systems and methods for trading fixed return options on secondary markets such as stock exchanges including an electronic order delivery and execution system and/or an on-floor trading auction, configured to provide an exchange-traded environment. Also included is at least one fixed return option or binary option traded through an exchange's order delivery and execution system or on-floor trading auction, whereby such trading environment provides an open market. Also included are methods for calculating the closing settlement value for securities underlying fixed return options or binary options in order to maintain a fair and orderly trading environment for these instruments on an organized exchange.