Asset-Or-Nothing Call Option

Dictionary Says

Definition of 'Asset-Or-Nothing Call Option'

A derivative security for which there is no payoff unless the underlying asset's price exceeds the strike price. With an asset-or-nothing call option, the payoff is equal to the asset's price, as long as the asset's price exceeds the strike price. If the asset's price remains below the strike price, the option expires as worthless.
Investopedia Says

Investopedia explains 'Asset-Or-Nothing Call Option'

The payoff structure of an asset-or-nothing call option is different from that of a regular (plain vanilla) option, which pays the difference between the exercise (strike) price and market price at expiry. The opposite of an asset-or-nothing call option is an asset-or-nothing put option, which pays a fixed amount if the asset's price remains below the strike price and pays nothing otherwise. Asset-or-nothing options are classified as binary options because there is either a fixed payoff or no payoff at all.

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Related Definitions

  1. Asset-or-Nothing Put Option

    An option payoff ...
  2. Call Option

    An agreement ...
  3. Binary Option

    A type of option ...
  4. Vanilla Option

    A financial ...
  5. Strike Price

    The price at ...
  6. Expiration Date

    The last day ...
  7. Volatility

    1. A statistical ...
  8. Risk Capital

    Investment funds ...
  9. Price Risk

    The risk of a ...
  10. Cum Rights

    A shareholder of ...

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