Search
Generic filters
Filter by Categories
Accounting
Banking

Derivatives




External Barrier Option


A barrier option in which the reference rate used to trigger the underlying differs from the one used to compute the caplet payoff (or floorlet payoff). In other words, it involves two assets rather than one and the payoff asset of the option differs from the measurement asset. An example is a call option on a basket of stocks which would knock out if the currency denominating the stocks appreciated by a specific amount or beyond a specific level.



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    Your email address will not be published.*