A no-touch option pays a fixed amount at expiry if the underlying never touches the barrier. A one-touch paid at expiry and a no-touch on the same barrier add up to a zero-coupon bond.
Quantitative Finance · Glosarium
Quantitative Finance · Glosarium
A no-touch option pays a fixed amount at expiry if the underlying never touches the barrier. A one-touch paid at expiry and a no-touch on the same barrier add up to a zero-coupon bond.