Derivatives

Lock-In Option

June 24, 2021
Islamic Finance

Equity-Type Sukuk

June 24, 2021

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A binary option which pays off only if its underlying trades through the upper or lower barrier at least once before expiration. This option has many variations including options where the payoff is contingent upon the barrier being breached both upside and downside during the option’s life or where the payoff is contingent upon the underlying trading outside the range at expiration.

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