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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 SS ,barrier H<SH < S ,and strike K>HK > 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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