Filter by Categories
Accounting
Banking

Derivatives




Down-and-Out Call


A down-and-out option (literally, a knock-out barrier option) that deactivates, i.e., expires if the market price of the underlying falls to a specified trigger price. Otherwise, it remains a call option that can be exercised at the holder’s discretion. The trigger lies below the underlying’s price at initiation, hence the “down” move labeling the option.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*