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 Barrier Checklist 2011-2024

Barrier Checklist 2011-2024 Form

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Hello in this video a walk through the different permutations of barrier options and at the end I'll show you the key relationship that we want to understand for the valuation of the barrier options, and we can have either a knock-out barrier or knock in barrier and if the current asset price is below the barrier then we can either have an up and out or an up and in and if the stock price is above the barrier we can either have a down and out or a down and in so the key feature of the barrier option of course is the barrier and that means in addition to our usual variables of initial stock price and strike price that we need to have a barrier I'm following John holes, so I denote the barrier with an H and in this case the barrier happens to be $95 and the barrier option can either be a knock-out or knock in for the knockout picture I've got a boxing glove here and for the knock in I've got a tree because we sometimes say that the barrier option comes alive or as activated or comes into

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