Equation: Power option

Power option

created by:

Thijs van den Berg (http://www.sitmo.com)

A power option gives the owner the right to buy/sell the underlying to a given power for a fixed value -the strike-.

	Value of the power call option at expiration
	Value of the power put option at expiration
p	The power
K	Strike (exercise) price

Related Equations
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Asian option (floating strike) »
Asymmetric Power Option »
Barrier options »
Basket option »
Binary (digital) asset-or-nothing option »
Binary (digital) cash-or-nothing option »
Binary (digital) gap option »
Chooser option, complex »
Chooser option, simple »
Double Barrier option »
Double Binary (digital) cash-or-nothing option »
Dual Strike option »
Exchange option »
Extendible option, holder »
Extendible option, writer »
Forward start option »
General Power Option »
Lookback option, fixed strike »
Lookback option, floating strike »
Option on a Option (compound) »
Parabola Option »
Product option »
Quanto option »
Quotient option »
Rainbow option »
Range option »
Spread option »
Symmetric Power Option »
Two asset correlation option »
Vanilla option »
Main Equations Index »

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