Payoff__Payoff_Type__Cash_Or_Nothing

In the call case the payoff amount simply equals *C*, provided the referenced variable *x* exceeds some fixed strike *K*. Otherwise it equals *0*.

In the put case the payoff equals *C*, provided *x* falls below *K*. Otherwise it equals *0*.

The name *Cash Or Nothing* results from the fact that the current definition is equivalent to having the folowing two distinct outcomes (from the point of view of the long payoff holder):

Either getting the cash amount *C* or getting nothing.

The formal definition is as follows:

*x* is transformed into *C if εx > εK* and *0 if εx <= εK* where *ε* and *K* are constants defined in the contract specification.

Furthermore *ε* can take only the values *1* or *-1* and corresponds to a payoff attribute called Payoff::Direction

*K* may take any value and is usually referred to as "strike".