Economics
Capitalism for the Poor
June 26, 2022
Derivatives
Plain Vanilla Option
June 26, 2022

A barrier option (introduced in the mid-1990s by Bankers Trust Australia) in which the barrier level needs to be breached for a specific number of dates (or points in time) in order for the option not to knock out. This type of option aims to avoid a knock out by adding a time requirement to the barrier condition.

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