Relationship between regular call and binary call option

Reference no: EM131240925

1. What is the relationship between a regular call option, a binary call option, and a gap call option?

2. Produce a formula for valuing a cliquet option where an amount Q is invested to produce a payoff at the end of n periods. The return earned each period is the greater of the return on an index (excluding dividends) and zero.

Reference no: EM131240925

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