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Barrier Option

   Also found in: Wikipedia 0.01 sec.
Barrier Option
An option contract that may only be exercised when the underlying asset reaches some barrier price. A barrier option may either be a knock-in or a knock-out. A knock-in may only be exercised when the underlying asset rises above or falls below the barrier price. On the other hand, a knock-out automatically expires when the underlying asset rises above or falls below the barrier price. It is important to note that the barrier price is distinct from the exercise price, though, theoretically, they may be set at the same amount. See also: Exotic option.


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See also: Barrier Option, Down-and-In Option, Down-and-Out Option, Equity-Linked Foreign Exchange Option - ELF-X, Option, Quanto Option, Vanilla Option
See also: Barrier Option, Down-and-In Option, Down-and-Out Option, Equity-Linked Foreign Exchange Option - ELF-X, Option, Quanto Option, Vanilla Option
0634 and the lowest since October while GBP-USD broke above a barrier option at 1.
 
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