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Given a Current Stock Price SS ,Strike Price KK ,And Barrier HH ,Which of the Following Statements Is Most Valid?
A)Given

Question 11

Multiple Choice

Given a current stock price SS ,strike price KK ,and barrier HH ,which of the following statements is most valid?


A) Given H<K<SH < K < S
,if the barrier
HH
Is moved lower,then a down-and-in put increases in value and a down-and-out put falls in value.
B) Given H<S<KH < S < K
,if the barrier
HH
Is moved lower,then a down-and-in put and a down-and-out put both increase in value.
C) Given H<K<SH < K < S
,if the barrier
HH
Is moved lower,then a down-and-out call increases in value and a down-and-in call decreases in value.
D) Given H<K<SH < K < S
,if the barrier
HH
Is moved lower,then a down-and-out call and a down-and-in call both increase in value.

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