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 transcript:

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

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

Figure Graph of down-and-out barrier call

Figure Binomial approach for barrier options

Figure Down-and-in call option

Figure Down-and-out put option

Figure Relation between barrier put price and time to maturity

Figure Payoffs of option on the average and European call option

Figure Option on the average and monitoring interval

Figure Exchange option, correlation, and volatility