Payoff


Payoff is a direct subtype of Financial
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with functions Payoff Functions, keys Payoff keys and example object payoff_#1

TYPE INCLUSION RELATIONSHIPS

Financial

Payoff

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AVAILABLE FUNCTIONS

Amount

Create

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AVAILABLE CREATE FUNCTION KEYS

Alpha

Beta

Cash

Direction

K

Lambda

Notional

Payoff Type

Strike

Strike2

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TYPICAL OBJECTS OF TYPE Payoff

payoff

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This type represents the exact mathematical dependence of the cash flow amount on the observed value of the underlying variable.
For example, the cash flow amount associated with a stock option is given by max{ ε(x-K) , 0 } where x is the underlying variable and the rest are constants.
In this case, a Payoff object would capture exactly the above formula.
The available payoff types are described in Payoff Type.