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5. An exotic option with St = 19 and K = 18 pays off 1 if S reaches 20 during the life of the option

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5. An exotic option with St = 19 and K = 18 pays off 1 if S reaches 20 during the life of the option and 0 if S remains below 20 throughout the life of the option. Which of the following best describes this option? a. Gap put b. Down-and-in put c. Up-and-in call d. Up-and-in put e. Gap call 6. Which of the following best describes the rho of an option? a. The sensitivity of option price to a change in the price of the underlying asset b. The time decay of the option c. The change in delta with respect to a change in the price of the underlying asset d. The sensitivity of option price to a change in the volatility of the underlying asset e. The sensitivity of option price to a change in the riskless rate of interest

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