webcab.lib.finance.options
Class BinaryOptions

java.lang.Object
  |
  +--webcab.lib.finance.options.BinaryOptions

All Implemented Interfaces:

Serializable

public class BinaryOptions

extends Object

implements Serializable

This class evaluates the pay-off from a Binary option at expiry.

See Also:

Serialized Form

Constructor Summary

BinaryOptions()
Creates a new instance.

Method Summary

double	payOffBinaryCall(double expiryPrice, double strike, double payout) This method calculates the payoff from a binary option at expiry.
double	payOffBinaryPut(double expiryPrice, double strike, double payout) This method calculates the payoff from a binary option at expiry.

Methods inherited from class java.lang.Object

clone, equals, finalize, getClass, hashCode, notify, notifyAll, toString, wait, wait, wait

Constructor Detail

BinaryOptions

public BinaryOptions()

Creates a new instance.

Method Detail

payOffBinaryCall

public double payOffBinaryCall(double expiryPrice,
                               double strike,
                               double payout)
                        throws BinaryOptionsDemoException

This method calculates the payoff from a binary option at expiry.

Parameters:

expiryPrice - underlying asset price at expiry

strike - the strike price of the binary call option

payout - the amount paid out when the binary option is exercised in the money

BinaryOptionsDemoException

payOffBinaryPut

public double payOffBinaryPut(double expiryPrice,
                              double strike,
                              double payout)
                       throws BinaryOptionsDemoException

This method calculates the payoff from a binary option at expiry.

Parameters:

expiryPrice - underlying asset price at expiry

strike - the strike price of the binary put option

payout - the amount paid out when the binary option is exercised in the money

BinaryOptionsDemoException