A type of exotic option that provides a payoff if the value of the underlying reaches or does not reach a predetermined price or "barrier level". Barrier options are characterized as "knock in" if the right to exercise the option is met, or "knock out" if the right is not met. It is characterized as "up" if the price of the underlying is above the barrier, and as "down" if it the price is below the barrier.
Related information about barrier option:
- Barrier option - Wikipedia, the free encyclopedia
In finance, a barrier option is an exotic derivative typically an option on the underlying asset whose price breaching the pre-set barrier level either springs the ...
- Barrier Option Definition | Investopedia
A barrier option can be a knock-out, meaning it can expire worthless if the underlying exceeds a certain price, limiting profits for the holder but limiting losses for ...
- The Ins and Outs of Barrier Options: Part 1
barrier option contracs specify a rebate to be paid ... the barrier, the in barrier option is knocked in and becomes ... out barrier option remains a standard option of ...
- Barrier Option
A barrier option is a path dependent option that has one of two features: 1) A knockout feature causes the option to immediately terminate if the underlier reaches ...
- barrier options in the Black-Scholes framework
the payoff is the same as that for a vanilla call, the barrier option is termed a European down-and-out .... We can apply this method to the barrier option problem.
- Barrier Option - Financial Dictionary - The Free Dictionary
An option contract that may only be exercised when the underlying asset reaches some barrier price. A barrier option may either be a knock-in or a knock-out.
- Two Extensions to Barrier Option Valuation
first valuation of a barrier option appears to have been the valuation of a ... The payoffs to a protected barrier option are similar in nature to those of a buy-write, ...
- What is barrier option? definition and meaning
Definition of barrier option: A type of exotic option that provides a payoff if the value of the underlying reaches or does not reach a predetermined price or barrier ...