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A Supershare options is a type of binary option. In a common binary option the payout would be a set dollar amount should the underlying be greater than (or less than) the strike.
In a Supershare option, there is a lower and upper boundary. If the underlying at expiry is between these boundaries the payoff is:
Payoff = Underlying / LowerBoundary
If the underlying is outside these boundaries the payoff is zero.
Formula for Supershare Options
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The price of a Supershare option, using the method introduced by Hakansson (1976) can be found by:
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where
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 , 
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w = European price of option
S = Spot price of underling asset
XL = Lower strike limit
XH = Upper strike limit b = cost of carry
T = Time to maturity
 = Volatility of underling asset
N = Cumulative normal distribution function
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For more information see our pricing plans.
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