Derivatives

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July 28, 2021
Islamic Finance

Urf

July 29, 2021

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A barrier option (also a type of binary/ digital options) whose payoff will be paid out at first hitting time: once the barrier is breached for the first time during the lifespan of the option. Otherwise, no payoff accrues.

This is in contrast with one touch options (OT) in which the payoff amount is only paid at maturity.

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