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Consider two barrier options written on the same underlying stock, where both options have one year to expiry. Option A is an up-and-out call option
Consider two barrier options written on the same underlying stock, where both options have one year to expiry. Option A is an up-and-out call option with a strike price of $30 and a barrier of $40. Option is an up-and-out call option with a strike price of $30 and barrier of $35. The underlying stock has a current price of $28 Which of the following is true? Note ng calculations are necessary - use your intuition Select one Option A will trade at a tigher price/pretium than Option Option A will trade lower price premium than Option B. Option A and Options will have the same price/premium since their strikes and expiries are identical
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