Online Chooser, simple Option Calculator

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powered by
Derivative toolbox 4.0 - beta
Output 
Model Input
Volatility
Time to maturity
Strike
Time to choose
Interest rate
..results..

Description

A simple chooser option gives the owner the right to choose at some point in the future (before expiration) wether the option is to be a vanilla call or put. The choice is made based on which of the two vanilla options is the most expensive at the time of choice..
Payoff functions at expiration of a simple chooser option.

Relevant Equations

The payoff equation for this option is given by:

payoff equation