![]() ![]() ![]() ![]() It is as if it did not matt er whether you travelled from Paris to London by air or by the Channel Tunnel, as lon g as yo u arrived on time. Wheth e r th e und erlying asset pri ce reaches a give n price by movin g down and th en up, or up and then down, matters not to the buyer or seller of th e option. In particul ar, given th e final price of the und erlying asset, the pa y-o ff will be the same rega rdle ss of the path taken by the underlying asset during the life of the option to reach that final price. He pay-off of a standard European op tion depends on ly on th e p rice of the underlying asset on the exp iration date. BREAKINGDOWNTHE BARRIERS Though similarly path-dependent, barrieroptions areeasierto value thanstandard American options, asMarkRubinstein and Eric Reiner explain ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |