barrier option investment & finance definition
An option with a payoff that depends on whether the underlying investment trades through a barrier price. If the option doesn't reach a certain price level, it is worthless.
Barrier options were created as a way to provide the insurance value of an option without charging as much premium.
Barrier Option
A family of path dependent options whose pay-off pattern and survival to the expiration date depend not only on the final price of the underlying currency but also on whether or not the underlying currency breaks a predetermined ...
Barrier option: A type of "exotic" option that comes into existence or ceases to exist once a certain price is reached. They are often added to a "vanilla" or typical option to make the premium less expensive. For example, a 1.
BARRIER OPTIONS Unlike standard European options where the payoff on expiry depends only on the price of the underlying at expiration, barrier options are path-dependent.
Barrier options
Variations of the standard financial options. They are activated or cease to exist once the price of the underlying security has reached a specified level.
Back to Top ...
Barrier Option
A type of option whose payoff depends on whether or not the underlying asset has reached or exceeded a predetermined price.
Bermuda Option ...
Barrier options
Option contracts with trigger points that, when crossed, automatically generate buying or selling of other options. These are exotic options.
Barrier Options
Path-dependent option with both its payoff pattern and its survival to the nominal expiration date is dependent not only on the final price of the underlying but also on whether or not the underlying sells at or through a barrier ...
Barrier options
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, ...
A Barrier Option has a component in addition to the strike price and the expiry date. This component is called a ‘trigger’.
A process where a barrier option (European) becomes active as the underlying spot price is in the money. Knock out has a corresponding meaning although the option may permanently cease to exist.
Barrier Option - When an options payoff depends the underlying asset reaching a certain price
Bear Spread - An option strategy with maximum profit when the price of the underlying security goes down.
Knock In : A process where a barrier option (European) becomes active as ...
Knock Out : Has a corresponding meaning although the option may permanent...
Knockin : A plain vanilla option that does not exist until the trigger is...
Synthetic replication
Vanilla (disambiguation)
Mountain range (options)
Barrier option ...
Finally, the options market exchange is the most diverse and most inventive options markets. He is responsible for virtually all forms of so-called exotic options or second generation (barrier options, Asian options, options on options, etc..).
Among the topics covered in Black-Scholes and Beyond: detailed discussions of pricing and hedging options; volatility smiles and how to price options ``in the presence of the smile''; complete explanation on pricing barrier options.
 See also: Option, Options, Market, Underlying, Future
  
|
RSS
