Online Compound Option Calculator

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

Description

A compound option is an option on an option. E.g. you can have the right to buy a call for 3.50 a some point of time in the future.

Relevant Equations

The payoff equation for this option is given by:

payoff equation