# Cash or nothing option

A digital gap option has a payout profile equal to the asset value, less the gap value, depending on whether the asset finishes above or below the strike price. In a cash-or-nothing option, a predetermined amount is paid if the asset is, at option expiry, above call or below put some strike level, independent cash or nothing option the path taken. Technical Details The simplest Binary also known as Digital options are cash-or-nothing and asset-or-nothing options. The payout at expiry, if the option is in-the-money, requires the delivery of either a specified cash amount or cash or nothing option underlying asset.

The value of the payoff is not affected by the size of the difference between the underlying and the strike price, and can be in the form of a cash payment or delivery of the underlying. Introduction A Binary Option is an option with a fixed, pre-determined payoff if the underlying instrument or index is at or above the strike at expiration. The options described here are path independent, which means that the payout profile depends only on the value of the underlying asset on the expiration date of the option. The payout at expiry, if the option is in-the-money, is cash or nothing option to the asset value, less the gap value. Technical Details The simplest Binary cash or nothing option known as Digital options are cash-or-nothing and asset-or-nothing options.

Technical Details The simplest Binary also known cash or nothing option Digital options are cash-or-nothing and asset-or-nothing options. The simplest Binary also known as Digital options are cash-or-nothing and asset-or-nothing options. The options described here are path independent, which means that the payout profile depends only on the value of the underlying asset on the expiration date of the option. The payout at expiry, if the option is in-the-money, requires the delivery of either a specified cash amount or the underlying asset.

An asset-or-nothing option is similar to cash or nothing option cash-or-nothing option except that the holder of the option is entitled to either the full asset value - at option expiry - or nothing. Calculate the fair value and delta for a path independent digital or binary gap option. A simple generalization of the asset-or-nothing option is a digital-gap-option. Portfolio valuation and risk analytics for multi-asset derivatives and fixed income. The simplest Binary also known as Digital options are cash-or-nothing and asset-or-nothing options.

The payout at expiry, if the option is in-the-money, is equal to the asset value, less the gap value. The next generation of powerful valuation and risk solutions is here. A digital gap option has a payout profile equal to the asset value, less the gap value, depending on whether the asset finishes above or below the strike price. Calculate the fair cash or nothing option and risk statistics for a path independent digital or binary all-or-nothing option.

Calculate the fair value and risk statistics for a path independent digital or binary all-or-nothing option. The value of the payoff is not affected by the size of the difference between the underlying cash or nothing option the strike price, and can be in the form cash or nothing option a cash payment or delivery of the underlying. For a call, the payout is received if the underlying asset price is greater than the strike price, and for a put, the payout is received if the strike is greater than the underlying asset price. A Binary Option is an option with a fixed, pre-determined payoff if the underlying instrument or index is at or above the strike at expiration.