• Corpus ID: 159368180

Pricing Formulae of Power Binary and Normal Distribution Standard Options and Applications

@article{HyongChol2019PricingFO,
  title={Pricing Formulae of Power Binary and Normal Distribution Standard Options and Applications},
  author={O Hyong-Chol and Dae-Sung Choe},
  journal={arXiv: Pricing of Securities},
  year={2019}
}
In this paper the Buchen's pricing formulae of (higher order) asset and bond binary options are incorporated into the pricing formula of power binary options and a pricing formula of "the normal distribution standard options" with the maturity payoff related to a power function and the density function of normal distribution is derived. And as their applications, pricing formulae of savings plans that provide a choice of indexing and discrete geometric average Asian options are derived and the… 

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