Tag Info

This looks like a binary option. Following this wikipedia article it is called an "asset or nothing call". The pricing formula in the Black-Scholes world is $$S e^{-q T} \Phi(d_1),$$ where $S$ is the current spot price, $q$ is the dividend yield, $\Phi$ the cdf of a standard normal and $d_1$ is as usual in BS. To my knowledge such options are much less ...