Islamic Finance
Riba al-Fadhl
June 28, 2020
Derivatives
One-Touch Option
June 28, 2020

barrier option which will be knocked out or deactivated if the outstirke barrier has been hit or touched three times during the option‘s life. In this sense, a baseball option is similar to a touch option, except that the number of touches are three rather than one.

The name is derived from the baseball game parlance “three strikes and you are out”.

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