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Asset-or-Nothing Call


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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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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