Question
A trigger call option lets the holder buy a stock at a aprice K, but only if the stock price is above H at the
A trigger call option lets the holder buy a stock at a aprice K, but only if the stock price is above H at the time of expiry (H greater than K)
a) Sketch the payout function for the trigger call.
b)Develop an analytic formula for the price of this option in the Black Scholes world.
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Handbook Of Asset And Liability Management Volume 2
Authors: S. A. Zenios, W. T. Ziemba
1st Edition
0444528024, 978-0444528025
