# Questions tagged [cash-or-nothing]

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### Cash-or-Nothing Call Option

I am trying to price a cash or nothing call option and I know know that the Cash or Nothing formula for a call option is $C(t,s)=Xe^{-r(T-t)}*N(d)$ If I have payoff X=100 r=0.03 T=2 $\sigma=0.3$ I ...
4answers
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### Derivation of the formulas for the values of European asset-or-nothing and cash-or-nothing options

The asset-or-nothing European option pays at t = T the value of the stock when at time T that value exceeds or is equal to the exercise price E, and nothing if the value of the stock is below E. So, ...
1answer
261 views

### Valuation of Cash-Or-Nothing option

Studying options pricing, I'm stuck with the following problem: The price of a stock is described by the dynamic: $$dS_t = \mu\, dt + \sigma\,dW_t$$ Compute the fair price of a Cash or Nothing ...
1answer
152 views

### Fair value of a binary cash-or-nothing option with a barrier

I want to find the fair value of a European cash-or-nothing option that pays \$1 if$S_t>K$and$S$breached the level$M<0<K$, where$S$is the risk-neutral process$dS_t=\sigma dW_t\$. My ...
1answer
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### How to calculate the NPV (Net present Value) in this question? [closed]

A company pays £1,200,000 to purchase a property. The company pays £30,000 at the end of each of the next six months to renovate the property. At the end of the eighth month the company sells the ...
1answer
267 views

### Volatility calculation for intra-day cash-or-nothing call binary option

Firstly, I do not have a quant finance background. This is new to me, and I imagine that this is a basic question for this group. I am calculating the price of a binary/digital option with closed-...
2answers
625 views

### How is holding an European call option equivalent to holding an asset-or-nothing call option and writing a cash-or-nothing call option?

The cash-or-nothing call option has a payoff that is equal to the strike price. All three options have the same expiry date.