Asset-or-Nothing Put
Computes the price of an asset-or-nothing put: it delivers the asset itself if the price finishes below the strike, and nothing otherwise. It's the downside counterpart of the asset-or-nothing call, and together they always sum to the asset's value, because one or the other always pays. The price is simply S·N(−d1). Enter the spot price, the strike, the interest rate, the volatility and the term.
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Asset-or-Nothing Put
Computes the price of an asset-or-nothing put: it delivers the asset itself if the price finishes below the strike, and nothing otherwise. It's the downside counterpart of the asset-or-nothing call, and together they always sum to the asset's value, because one or the other always pays. The price is simply S·N(−d1). Enter the spot price, the strike, the interest rate, the volatility and the term.
Get the asset, now betting on the fall
The asset-or-nothing put completes the quartet of binary options. Its verdict is simple: if the asset finishes below the strike, you receive the asset itself; if it finishes above, you receive nothing. It's the pessimistic version of the asset-or-nothing call, which delivers the asset on the upside.
There's a beautiful symmetry here. The asset-or-nothing call pays the asset if it rises, the put pays if it falls. Since one of the two always happens, together they sum to exactly the asset's value today, trivially discounted. The price of each is the asset multiplied by the risk-neutral probability of the respective direction.
Enter the spot price, the strike, the interest rate, the volatility and the term. The tool returns the price, which is simply the asset times N(−d1). These options are theoretical bricks: combining them with the cash-or-nothings reconstructs any plain option, which helps understand the internal structure of Black-Scholes.
Related Tools
Cash-or-Nothing Put
Computes the price of a cash-or-nothing put: it pays a fixed amount if the asset finishes below the strike, and nothing otherwise. It's the downside version of the digital option, the complement of the cash-or-nothing call. The price is the payout discounted and multiplied by the risk-neutral probability of the asset finishing below the strike, Q·e^(−rT)·N(−d2). Enter the spot price, the strike, the interest rate, the term, the volatility and the payout.
Asset-or-Nothing Call
Computes the price of an asset-or-nothing call: it delivers the asset itself if the price finishes above the strike, and nothing otherwise. It's the sibling of the cash-or-nothing option, and together they decompose the plain Black-Scholes call — a call equals exactly an asset-or-nothing minus a strike's worth of cash-or-nothing. The price is simply S·N(d1). Enter the spot price, the strike, the interest rate, the volatility and the term.
Digital Call (Cash-or-Nothing)
Computes the price of a cash-or-nothing digital call option: it pays a fixed amount if the asset finishes above the strike, and nothing otherwise. The price is the discounted payout multiplied by the risk-neutral probability of finishing in the money, Q·e^(−rT)·N(d2). It's the purest form of a binary bet and the building block of many exotic structures. Enter the spot price, the strike, the interest rate, the term, the volatility and the payout.
Two-Asset Correlation Binary
Computes the price of a two-asset binary option: it pays a fixed amount if and only if the first asset finishes above its strike AND the second asset finishes above its own. It's a conditional double bet whose price depends critically on the correlation between the assets — the more correlated, the more likely both conditions happen together. It uses the bivariate normal. Enter the two prices, the two strikes, the two volatilities, the correlation, the rate, the term and the payout.
Contingent-Premium Put Option
Computes the fair premium of a contingent-premium (pay-later) put option. As in the call version, the buyer pays only at expiry and only if the put finishes in the money. It's an attractive structure for those wanting protection with no upfront outlay, at the cost of a higher premium if the insurance is actually triggered. The price comes from the Black-Scholes put value divided by the exercise probability. Enter price, strike, rate, dividend, volatility and term.
Garman-Kohlhagen FX Put Price
Prices an FX put option with the Garman-Kohlhagen model, the currency-market version of Black-Scholes. As with the call, the foreign interest rate enters as a continuous dividend on the base currency: the premium is K·e^(−rd·T)·N(−d2) − S·e^(−rf·T)·N(−d1). The strike term is discounted by the domestic rate and the spot term by the foreign one. It's used to hedge against a currency falling or to speculate in that direction. Enter the spot rate, the strike, the domestic and foreign rates, the term in years and the volatility.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.