Thread: Barrier Option?
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Old 09-23-2015, 07:31 AM
sonia sharma sonia sharma is offline
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Binary option is a type of option whose payoff system depends on whether or not the underlying asset has reached to a predetermined price. A barrier option can be a knock-out, if the underlying exceeds a certain price, limiting profits for the holder but limiting losses for the writer. It can also be a knock-in, meaning it has no value until the underlying reaches a certain price.
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