Barrier options

Barrier Options
Barrier Options definition :
Option contracts that remain dormant until a trigger point (the barrier price) is reached, at which point the call or put option is activated, and results either in a long or short options position, ...

Barrier options
A type of exotic option, the value of which depends on the underlying passing (or not) a particular price point.
Knock-out and knock-in options are the commonest types of barrier option.

Barrier options
Contracts with trigger points that, when crossed, automatically generate buying or selling of other options. These are very exotic options. ...

BARRIER OPTIONS - Option contracts that remain dormant until a trigger point (the barrier price) is rea...
BARRIERS TO ENTRY - are obstacles to the entry of new firms into a market. Barriers to entry may take v...

A common example is the barrier option, which itself comes in various forms such as knock-in options and knock-out options (and reversed versions of both) that can be either single-barrier options or double-barrier options.

Different styles of options include European options, American options, Bermudan options, Barrier options, Exotic options and Vanilla options (a vanilla option being any option that is not exotic).

These are priced and behave very differently to standard barrier options, since they have intrinsic value when they are knocked in or out, ...

In all, there are eight flavors of barrier options comprising European puts or calls having barriers that are:
up-and-in,
down-and-in, ...

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Adjusted Exercise Price
Aggregate Exercise Price
Barrier options ...

Any barrier options, including a knock-in option, is activated or de-activated once the price of the underlying financial instrument reaches a set level. The opposite of a knock-in option is a knock-out option.

A method developed by BARRA, a consulting firm in Berkeley, Calif. It is commonly used by institutional investors applying performance attribution analysis to evaluate their money managers' performance.
Barrier options ...

See also: Exercise price, Basket options, Base currency, Multinational, Multinational corporation