Multiple Choice
Consider a down-and-out call and a down-and-in call with a current stock price , barrier , and strike . 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.
Correct Answer:

Verified
Correct Answer:
Verified
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