Derivatives Theory

All‑or‑Nothing Payout: The option pays a fixed amount if the underlying asset’s price is above (for a call) or below (for a put) the strike at expiration.
Fixed Payout: The payout is predetermined and does not vary with the magnitude of the price move.
Discontinuous Payoff: The abrupt switch in payoff results in unique sensitivity to changes in the underlying asset’s price near the strike.

We use cookies to remember your settings, analyze traffic, and provide personalized ads. Please select your preferences or read our Cookie Policy.