Online StrikeReset Option Calculator
-->
Description
The strike reset option allows the strike to be adjusted to the value underlying at a fixed date before expiration. The strike reset option has the following payout: Call = max(St - min(S1,X) ,0) Put = max(max(S1,X) - St ,0)
 |
| The payout of a strike reset call option. The strike is reset at t=0.4 to the asset price, which is lower than the initial strike. |
 |
| The payout of a strike reset call option. The strike is reset at t=0.4 to the asset price, which is above the initial strike. in this case the intial strike gives a better payoff that the new strike. |
Relevant Equations
The payoff equation for this option is given by:
|
