Derivatives

Floating Notional Equity Swap

September 17, 2021
Finance

Types of Dividends

September 18, 2021

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In plain vanilla call options, the option writer has to pay the holder the difference between the market price and the strike price at expiration, if the difference is positive (spot minus strike).

In an asset-or-nothing call (an asset-or-nothing option), the payoff is set equal to the asset’s price if the asset price is greater than the strike price. If not, no payoff should be expected from the option.

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