10. Answer the following questions about exotic options:

1. We have a call option with strike 50 and KO 60. Is it possible that the price of the option decline when the stock price rises from 57 to 58? Explain why and why not.
2. You have the following options. Place in order of most to least expensive. Assume that you have the same probability of hitting 45 and 55.

1. Vanilla call K=50, S=50
2. KI SKI Call option, S=50,K=50, K!=55
3. KI SKI Call option, S=50,K=50, KI=45
4. DKI one touch, S=50,K=50,KIs= 45,55
5. DKI two touch, S=50,K=50. KIs=45,55

3. We are comparing two SKO calls, S=60,K=60 for both. One has a KO of 49, and the other has a KO of 55. Do we have enough information to determine which option is priced higher? Why or why not?