No-Touch Option
Computes the price of a no-touch option: it pays a fixed amount if the asset does NOT touch a barrier before expiry, and nothing if it touches. It's the opposite bet to the one-touch — you win as long as the price behaves and stays away from the barrier. The two are complementary: the sum of a one-touch and a no-touch with the same barrier is always the discounted payout. Enter the spot price, the barrier, the rate, the volatility, the term and the payout.
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No-Touch Option
Computes the price of a no-touch option: it pays a fixed amount if the asset does NOT touch a barrier before expiry, and nothing if it touches. It's the opposite bet to the one-touch — you win as long as the price behaves and stays away from the barrier. The two are complementary: the sum of a one-touch and a no-touch with the same barrier is always the discounted payout. Enter the spot price, the barrier, the rate, the volatility, the term and the payout.
You win as long as the price behaves
The no-touch is the mirror of the one-touch. Instead of rooting for the price to reach a barrier, you root for it never to get there. The option pays a fixed amount if the asset stays away from the barrier throughout the contract's life, and nothing if it touches even once. It's the bet for someone who believes the market will stay calm.
The two are perfectly complementary. Either the price touches the barrier at some point (the one-touch wins) or it doesn't (the no-touch wins) — one of the two always happens. That's why the sum of a one-touch and a no-touch with the same barrier is exactly the payout, discounted. Knowing one gives you the other for free.
Enter the spot price, the barrier, the interest rate, the volatility, the term and the payout. The tool computes the no-touch as the discounted payout minus the one-touch. The further the barrier and the calmer the asset, the greater the probability of no touch and the more valuable the no-touch.
Related Tools
One-Touch Option
Computes the price of a one-touch option: it pays a fixed amount if the asset touches a barrier above the current price at any time before expiry, and nothing if it never touches. It's one of the most traded American binary options in the FX market, and its price is the risk-neutral probability of the price reaching the barrier, brought to present value. Enter the spot price, the barrier, the rate, the volatility, the term and the payout.
Quanto Option
Computes the price of a quanto call: an option on a foreign asset, but whose payoff is paid in domestic currency at a fixed exchange rate. This removes the FX risk for the investor but introduces a drift adjustment that depends on the correlation between the asset and the exchange rate. It's widely used by investors who want exposure to a foreign index without the currency risk. Enter the asset price, the strike, the two rates, the asset and FX volatilities, the correlation, the term and the fixed exchange rate.
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.
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.
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.
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.
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.