Consider a Down-And-Out Call and a Down-And-In Call with a Current

question 33

Multiple Choice

Consider a down-and-out call and a down-and-in call with a current stock price $S$ ,barrier $H < S$ ,and strike $K > H$ .When does the knock-out option increase in price and the knock-in decrease in price?

• A)When the stock price increases.
• B)When the volatility increases.
• C)When the barrier increases.
• D)When the strike increases.

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Definitions:

DSM-5

The fifth edition of the American Psychiatric Association's classification and diagnostic tool for mental health professionals.

Substance Use

The consumption of drugs or alcohol, not necessarily implying abuse, but focusing on the act of using these substances.

Substance Withdrawal

Experience of clinically significant distress in social, occupational, or other areas of functioning due to the cessation or reduction of substance use.

Alcohol-Induced

Pertains to conditions or disorders that are directly caused by the consumption of alcohol.