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What happens to the price of a down-and-out call option when the underlying asset price comes close to the barrier level? A. Its price goes
What happens to the price of a down-and-out call option when the underlying asset price comes close to the barrier level?
A. | Its price goes up. | |
B. | The option value stays the same. | |
C. | Its price goes down. | |
D. | We cannot tell whether the option price will increase or decrease. |
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