Exotic options: Barrier options (FRM T3-42)

The barrier option adds a barrier value (for example, H = $95.00) and it the option can either "knock-out" (ie, get knocked-out if the barrier is breached) or "knock-in" (ie, come into existence if the barrier is breached. If the barrier is below the asset price, it is either a down-and-out or down-and-in barrier option; if the barrier is above the asset price, it is either an up-and-out or up-and-in barrier option. The key valuation relationship is c(ui) + c(uo) = c and c(di) + c(do) = c. XLS: trtl.bz/2P1BiNr
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[@edofio2994]

What happening if barriera option is perpetual? Which T do you use? Thanks in advance!

[@mritunjoypaul10]

Awesome dude

[@manthanshah7876]

If the stock price remains range bound in a down and out option then do we end up with the option if barrier > strike price?

[@kinjat561]

i have not seen any KO options with different strike and knockout values, they are always the same

[@krupakhandor7103]

Thank you for making vedio . So easy to understand it .❤️❤️

[@liangyumin9405]

any excel files about this lecture?

[@bionicturtle]

see beginning of description

[@MoayyadYaghi]

If an option got knocked out, then asset price went bellow the barrier. Does option come back to life ?? Or once its out, its out

[@asifmammadov734]

Once its out, its out