Consider an Option That Pays $1000 If the Stock Price $\left[ K _ { 1 } , K _ { 2 } \right]$

Multiple Choice

Consider an option that pays $1000 if the stock price at maturity falls outside a range $\left[ K _ { 1 } , K _ { 2 } \right]$ . Which of the following is valid?

A) The option may be written as the sum of two barrier options.
B) The option decreases in value as $K _ { 2 } - K _ { 1 }$ decreases.
C) The option may be written as the sum of two asset-or-nothing options.
D) The option may be written as the sum of two cash-or-nothing options.