Search
Generic filters
Filter by Categories
Accounting
Banking

Derivatives




Hard Barrier Option


A barrier option which has a hard barrier (i.e., a level rather than a range). This option is typically knocked in or out in whole, rather than gradually. In other words, the whole contract is knocked in or out depending the underlying crossing the barrier. For example, suppose that the option is an up and out with a hard barrier of 100. If the maximum underlying value reached before expiration is 101 then the entire amount of potential payoff is lost.



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    Your email address will not be published.*