Exchange Currency

down-and-out barrier option

A type of barrier option in which the spot price of the underlying is set above the barrier level, and the price of the underlying must close lower in order for the option to be knocked out or cancelled. It is named "down-and-out" because the right to exercise the option disappears if the price of the underlying is below the barrier.

Related information about down-and-out barrier option:
  1. What is down-and-out barrier option? definition and meaning
    Definition of down-and-out barrier option: A type of barrier option in which the spot price of the underlying is set above the barrier level, and the price of the ...
     
  2. Numerical Methods for Pricing Exotic Options - Imperial College ...
    Data: Initial stock price X0,strike price K, lower barrier HL, risk-free rate r, expiration time T, volatility σ. Result: Put and call values of down-and-out Barrier option ...
     
  3. Exotic Options - Barrier Options
    Down-and-In Barrier Options: A down-and-in option is the opposite of a down- and-out barrier option. Down-and-in options only carry value if the price of the ...
     
  4. Hitting the Barrier
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  5. Barrier Options by OptionTradingpedia.com
    Down-and-Out : Barrier option becomes de-activated if the underlying asset moves down beyond the barrier price. The satisfaction of a feature criteria is known ...
     
  6. 4.2.2 Barrier options
    Reload the initial applet parameters and switch from inBarrier* to outBarrier* to experiment with the payoff of an down-and-out barrier option. How are the in- and ...
     
  7. Brownian Excursions and Parisian Barrier Options
    For a down-and-out barrier option, the case of interest is when the initial price of the underlying asset is greater than the barrier this is no more the case for a ...
     
  8. Down-and-out Barrier Option Calculator - Google Docs Templates
    Down-and-out Barrier Option Calculator. By John TSO. Rating: 0.00 out of 5. 0 ratings. Report abuse. Down-and-out Barrier Option Calculator. Close this window ...