Asset-or-Nothing Put Option

Loading the player...

DEFINITION of 'Asset-or-Nothing Put Option'

An option payoff that is equal to the asset's price if the asset is below the strike price, otherwise the payoff is zero.

BREAKING DOWN 'Asset-or-Nothing Put Option'

These types of options don't function like regular (plain vanilla) options that pay the difference between the exercise (strike) price and market price at expiry.

RELATED TERMS
  1. Asset-Or-Nothing Call Option

    A derivative security for which there is no payoff unless the ...
  2. Average Price Call

    A type of option where the payoff is either zero or the amount ...
  3. Average Price Put

    A type of option where the payoff depends on the difference between ...
  4. Cash-or-Nothing Put

    An exotic option whose payoff is a specified fixed price (sometimes ...
  5. Cash-Or-Nothing Call

    An exotic option whose payoff is a predetermined amount (sometimes ...
  6. Multi Index Option

    A type of investment in which the payoff depends on the difference ...
Related Articles
  1. Options & Futures

    Exploring The World Of Exotic Options

    Exotic options provide investors with new alternatives to manage their portfolio risks and speculate on various market opportunities. The pricing for such instruments is considerably complex, ...
  2. Professionals

    European vs. American Options and Moneyness

    CFA Level 1 - European Vs. American Options and Moneyness. Differentiates European and American options and contrasts the concepts of instrinic and time value. Also discusses the moneyness of ...
  3. Options & Futures

    How To Build Valuation Models Like Black-Scholes (BS)?

    Want to build a model like Black-Scholes? Here are the tips and guidelines for developing a framework with the example of the Black-Scholes model.
  4. Options & Futures

    What's the Strike Price?

    The strike price is the price at which a derivative can be exercised, and refers to the price of the derivative’s underlying asset. In a call option, the strike price is the price at which the ...
  5. Options & Futures

    NYIF Instructor Series: Synthetic Stock

    In this short instructional video Anton Theunissen explains how to replicate a levered stock using a combination of options.
  6. Professionals

    Interest Rate Options vs. FRAs

    CFA Level 1 - Interest Rate Options vs. FRAs. Learn the differences between interest rate options and forward rate agreements. Sample payoff calculations of an interest rate option.
  7. Options & Futures

    Options Basics: Types Of Options

    The distinction between American and European options has nothing to do with geographic location.
  8. Professionals

    Incentive Stock Options

    CFP Online Study Guide - Employee Benefits Planning - Incentive Stock Options
  9. Options & Futures

    Getting Acquainted With Options Trading

    Learn more about stock options, including some basic terminology and the source of profits.
  10. Professionals

    F. Characteristics of All Options

    All option contracts are issued and their performance is guaranteed by the Options Clearing Corporation (OCC). Standardized options trade on the exchanges, such as the Chicago Board Options Exchange ...
RELATED FAQS
  1. How do I change my strike price once the trade has been placed already?

    Learn how the strike prices for call and put options work, and understand how different types of options can be exercised ... Read Answer >>
  2. What's the difference between a regular option and an exotic option?

    Before learning about exotic options, you should have a fairly good understanding of regular options. Both types of options ... Read Answer >>
  3. How does the term 'in the money' describe the moneyness of an option?

    Find out what in the money means about the moneyness of call or put options and what it indicates about the relationship ... Read Answer >>
  4. How do I set a strike price for an option?

    Learn about the strike price of an option and how to set a strike price for call and put options depending on risk tolerance ... Read Answer >>
  5. What is the difference between in the money and out of the money?

    Learn about how the difference between in the money and out of the money options is determined by the relationship between ... Read Answer >>
  6. Can an option have a negative strike price?

    The simple answer is that, at least when it comes to exchange traded options, an option can't have a negative strike price ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center