Plain Vanilla Barrier Option

Derivatives
Partial Lookback Call Option
May 30, 2022
Accounting
Rebuttable Presumption
June 1, 2022

A standard barrier option where an event takes place at the first touch of the pre-specified barrier. In other words, the option’s payoff depends on whether the underlying reaches, for the first time, a preset knock-in or knock-out price or not. This in contrast with with more exotic barrier and event specifications.

Plain vanilla barrier options are also referred to as one touch barrier options.

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