A type of barrier option in which the spot price of the underlying is set above the barrier level, and the price of the underlying must close lower in order for the option to be knocked out or cancelled. It is named "down-and-out" because the right to exercise the option disappears if the price of the underlying is below the barrier.
Related information about down-and-out barrier option:
- What is down-and-out barrier option? definition and meaning
Definition of down-and-out barrier option: A type of barrier option in which the spot price of the underlying is set above the barrier level, and the price of the ...
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Data: Initial stock price X0,strike price K, lower barrier HL, risk-free rate r, expiration time T, volatility σ. Result: Put and call values of down-and-out Barrier option ...
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Reload the initial applet parameters and switch from inBarrier* to outBarrier* to experiment with the payoff of an down-and-out barrier option. How are the in- and ...
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Down-and-out Barrier Option Calculator. By John TSO. Rating: 0.00 out of 5. 0 ratings. Report abuse. Down-and-out Barrier Option Calculator. Close this window ...