An investing derivative whereby the holder has a claim to one unit of the underlying asset if the market price of the asset is above the strike price of the option. If the market price is lower than the strike price, the holder receives nothing. For example, if XYZ stock is at $45 and the strike price is $40, on the option expiration date, the holder will receive $5 per unit of stock.
Related information about asset-or-nothing call option:
- Asset-Or-Nothing Call Option Definition | Investopedia
With an asset-or-nothing call option, the payoff is equal to the asset's price, as long as the asset's price exceeds the strike price. If the asset's price remains below ...
- Asset-or-Nothing Call Option Definition & Example | InvestingAnswers
We explain the definition of Asset-or-Nothing Call Option, provide a clear example of how it works and explain why it's an important concept in business, finance ...
- Asset-or-Nothing Call Option: Definition from Answers.com
Asset-or-Nothing Call Option An option payoff that is equal to the asset's price if the asset is above the strike price, otherwise the payoff is zero.
- What is asset-or-nothing call option? definition and meaning
Definition of asset-or-nothing call option: An investing derivative whereby the holder has a claim to one unit of the underlying asset if the market price of the asset ...
- Chapter 22 – Solutions
The asset-or-nothing call option has the following payoff: if. 60. T. T. S. S >. We need to use the call and the gap call to build an option that pays off for some ...
- Download as a PDF - CiteSeer
Figure 5: The Potential Maturity Payoffs of an Asset-or-Nothing Call Option. Asset -or-Nothing Binaries. An asset-or-nothing option pays off one unit of the ...
- K
+ 1 asset-or-nothing call option with strike price K. – K cash-or-nothing call option with strike price K. = 1 ordinary call option with strike price K. Similarly, a put ...
- MA408 Mathematics of Financial Derivatives - Personal WWW Pages
[Note that N(0) = 1. 2 .] (4 marks). (d) Recall that an asset-or-nothing call option has payoff function Λ(S(T)) of the form. Λ(x) = . x for x > E, x/2 for x = E,. 0 ...