Barrier Options Have Payoffs That

question 11

Multiple Choice

Barrier options have payoffs that

• A) have payoffs that only depend on the minimum price of the underlying asset during the life of the option.
• B) depend both on the asset's price at expiration and on whether the underlying asset's price has crossed through some barrier.
• C) are known in advance.
• D) have payoffs that only depend on the maximum price of the underlying asset during the life of the option. Barrier options have payoffs that depend both on the asset's price at expiration and on whether the underlying asset's price has crossed through some barrier.

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