Cash Or Nothing Option

Cash-or-nothing options. The optiontype is Digital. Also known as Binary. It pays out a cash amount K at expiry if the option is in-the-money at expiry.


Below a table with call and put prices for given parameters.
  • Input Parameters
  • Call or Put option
  • S - underlying Spotrate
  • X - strike
  • K - cash amount
  • T - time to maturity in fraction of a year
  • r - risk free interest rate
  • b - cost of carry
  • v - volatility
  • Parameter Values
  • Call/Put option
  • 100
  • 80
  • 10
  • 0.75
  • 0.06
  • 0.00
  • 0.35
  • Call/Put Prices
  • Call:6.8889
  • Put :2.6710