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Figure 17.1. Payoff diagram for a forward contract, a plain vanilla call option, and a cash or nothng digital option.

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Presentation on theme: "Figure 17.1. Payoff diagram for a forward contract, a plain vanilla call option, and a cash or nothng digital option."— Presentation transcript:

1 Figure 17.1. Payoff diagram for a forward contract, a plain vanilla call option, and a cash or nothng digital option

2 Figure 17.2. Price of cash or nothing digital call as a function of time to maturity and price of the dollar

3 Figure 17.3. Graph of down-and-out barrier call

4 Figure 17.4. Binomial approach for barrier options

5 Figure 17.5. Down-and-in call option

6 Figure 17.6. Down-and-out put option

7 Figure 17.7. Relation between barrier put price and time to maturity

8 Figure 17.8. Payoffs of option on the average and European call option

9 Figure 17.9. Option on the average and monitoring interval

10 Figure 17.10. Exchange option, correlation, and volatility


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