Multiple Choice
Consider two paths A and B for stock prices in a barrier option setting that result in the same terminal price. Paths A and B will have different payoff consequences for the barrier option if
A) Path A crossed the barrier before maturity while Path B did not.
B) Both paths crossed the barrier prior to maturity but Path A re-crossed it while Path B did not.
C) Neither path crossed the barrier prior to maturity.
D) All of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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