Search Investopedia

Cash-or-Nothing Call

Filed Under » ,
Dictionary Says

Definition of 'Cash-or-Nothing Call'

A type of option whose payoff is set to a specified fixed price if the final asset price is above the strike price; if not, the payoff is set to zero.
Investopedia Says

Investopedia explains 'Cash-or-Nothing Call'

Cash-or-Nothing options are typically european style options.

Related Definitions

  •

    Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.
    Read More »

  • Cash-or-Nothing Put

    A type of option whose payoff is set to a specified fixed price if the final asset price is below the strike price; if not, the payoff is set to zero.
    Read More »

  • European Option

    An option that can only be exercised at the end of its life, at its maturity. European options tend to sometimes trade at a discount to its comparable American option. This is because ...
    Read More »

    • Strike Price

      The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. ...
      Read More »

    • Cash Trigger

      A condition that triggers an investor to make a trade or take a specific action, such as a purchase, sale of the security, or the purchase or sale of a derivative (such as an option) of ...
      Read More »

    • Binary Option

      A type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions