Cash-or-Nothing Digital Option Pricing Calculator
Price a European cash-or-nothing digital call or put under Black–Scholes–Merton with continuous dividend yield. This covers one exotic payoff, not every exotic option.
Description
Price a European cash-or-nothing digital call or put under Black–Scholes–Merton with continuous dividend yield. This covers one exotic payoff, not every exotic option.
Cash-or-Nothing Digital Option Pricing Calculator: Price a European cash-or-nothing digital call or put under Black–Scholes–Merton with continuous dividend yield. This covers one exotic payoff, not every exotic option.
When to use Cash-or-Nothing Digital Option Pricing
Use this financial calculation for a transparent scenario, ratio, valuation, pricing, or cash-flow estimate when all amounts, dates, rates, and compounding conventions are defined consistently.
- spot Price
- Required number input.
- strike Price
- Required number input.
- time Years
- Required number input.
- risk Free Rate Percent
- Required number input.
- dividend Yield Percent
- Required number input.
- volatility Percent
- Required number input.
- cash Payoff
- Required number input.
- option Type
- Required string input.
How Cash-or-Nothing Digital Option Pricing works
Price a European cash-or-nothing digital call or put under Black–Scholes–Merton with continuous dividend yield. This covers one exotic payoff, not every exotic option. The tool evaluates the supplied inputs together and returns the named outputs below; it does not infer omitted operating conditions or change the units shown.1
- option Price
- The resulting option price returned as a number.
- exercise Probability
- The resulting exercise probability returned as a number.
Limitations and assumptions
- Option values depend on contract terms and model assumptions for volatility, rates, dividends, exercise, barriers, monitoring, discretization, and underlying dynamics. Black–Scholes and small trees can misprice early exercise, jumps, smiles, path dependence, and illiquid contracts.
- Use finite inputs in the displayed units and preserve more precision than the final presentation requires. Independently verify safety-critical, financial, compliance, or production decisions.
Alternative or Complementary approaches
Test multiple scenarios, reconcile rates and cash-flow dates, retain full precision, and verify contractual, tax, market, and accounting inputs with current primary documents or qualified advice.
References
-
Option (finance) — Wikipedia contributors
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