Use

The price is calculated for digital one touch binary options. A one touch digital pays a fixed amount, the rebate, as soon as the agreed price limit (barrier) has been reached. This can occur at any point in time during the term. This option type is always European, since premature exercising is not possible (the option pays automatically as soon as it is "in the money". This price calculator can also be used for calculating the rebate share of an out barrier option.

Integration / Calculation Basis

The price calculators for digital one touch binary options are called up with the following parameters.

Term: Remainder of the option term in days

Dom-rate: Interest rate 1 as a percentage

For-rate: Interest rate 2 as a percentage

Rebate

Rebate sign: +/- sign of the rebate amount

Spot

Barrier

Vola: Volatility

Up/Down: Upper/lower barrier indicator

Scope of Functions / Valuation

If the expiration date of the option is reached, the inner value of the option is displayed (the rebate amount).

If the option term has not expired, the price is calculated as follows:

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