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    Futures and Options Markets Study Set 3
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    Exam 22: Exotic Options and Other Non-Standard Products
  5. Question
    As the Barrier Is Observed More Frequently, a Knock-Out Option
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As the Barrier Is Observed More Frequently, a Knock-Out Option

Question 2

Question 2

Multiple Choice

As the barrier is observed more frequently, a knock-out option becomes: choose one)


A) More valuable
B) Less valuable
C) There is no effect on value
D) May become more valuable or less valuable

Correct Answer:

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