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Derivatives




Touch Rebate Barrier Option


rebate barrier option where a rebate is paid if the barrier has not been touched (for knock-in options) or has been touched (for knock-out options). The payoff of this option is a specific amount (a rebate) if a barrier is (or is not) breached, or the payoff of a vanilla option otherwise. The touch rebate barrier option can be established using a simple barrier or a double barrier touch rebate.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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