A call option (call) whose payoff is determined as a fixed amount of a particular monetary or financial asset (if the underlying price is above the option’s strike price, taking into account the amount of premium (call premium) paid by the call holder) or nothing otherwise.
The call option pays either the fixed amount or zero at the preset maturity date, depending on the level or performance of the underlying asset or rate.
This option takes many forms including one touch digital call option, cash or nothing digital call option, and asset or nothing digital call option.
