Double Barrier Binary Option

Investment Banking
Clean Shell
July 30, 2021
Derivatives
Digital Credit Default Swap
July 30, 2021

A double barrier option whose payoff at expiration date is equal to that of a binary option in case during the life of the option neither of the two barriers is touched or traded through (for a knock-out option) or if one of the barriers is breached (for a knock-in option).

This option is a combination of a binary option with a double barrier option.

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