The parabola option has a payoff which is a parabola of the underlying asset at expiration. The parabola option is a special case of the general power option.

List of symbols

	Value of the vanilla call option at expiration
	Value of the vanilla put option at expiration
	Value of the underlying asset at expiration
	Square value of the underlying asset at expiration
K	Strike (excercise) price
	Weights of the power terms
T	Expiration date

All text and equations on this page are freely available under the terms of the GNU Free Documentation License