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Binomial approach - PowerPoint PPT Presentation

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

Figure 17.1. Payoff diagram for a forward contract, a plain vanilla call option, and a cash or nothng digital option. Figure 17.2. Price of cash or nothing digital call as a function of time to maturity and price of the dollar. Figure 17.3. Graph of down-and-out barrier call.

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Binomial approach - PowerPoint PPT Presentation

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