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Double No-Touch Option


An option, also known as a range binary option or a double lock-out option, whereby an investor can receive a payout at expiration if the underlying does not reach or exceed one of the two barrier levels specified in the contract. With this option, an investor has the right to determine the barrier levels and time to expiration.

Also, the investor can choose the amount of payout that would be made if the underlying doesn’t “touch” either barrier. If the barrier is not breached, the investor’s losses would be limited to the premium.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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