Questions tagged [digital]

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Fuzzy Logic - Smoothing of payoff function: Linear vs. Sigmoid

For some options such as digital and barriers it is common to use "Fuzzy Logic" to improve estimation of value and greeks. But how / when are different functions used for smoothing the ...
Landscape's user avatar
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Pricing Option with Payoff of $S_T$ units of a European Digital Call [duplicate]

I am in a Black Scholes market with the usual riskless asset $B$ and risky asset $S$ with dynamics given by \begin{align*} dB_t &= rB_t dt, B_0 = 1, \\ dS_t &= rS_t dt + \sigma S_t dW_t^{\...
hamster1230's user avatar
1 vote
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Converting implied volatilities into digital option prices

I have Black and Scholes (1973) implied volatilities computed and I would like to convert these IVs to digital option prices using a Black and Scholes type of formula, I can't find a formula to do ...
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