Barrier option: Difference between revisions
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imported>Doug Williamson (Create page. Sources: The Treasurer's Global Guide to Investing Cash and the Handbook of International Financial Terms.) |
imported>Doug Williamson (Classify page.) |
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* [[Put option]] | * [[Put option]] | ||
* [[Underlying asset]] | * [[Underlying asset]] | ||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 13:51, 27 June 2022
A barrier option is one which is either activated, or cancelled, if the price of the underlying asset goes above or below a pre-determined level, at any time during the life of the option.
The benefit of barrier options - for the buyer of the option - is a lower premium, compared with a comparable standard option.
