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B
Barrier Option
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Path-dependent option with both its payoff pattern and its survival to the nominal expiration date dependent not only on the final price of the underlying but on whether or not the underlying sells at or through a barrier (instrike, outstrike) price during the life of the option. Examples of barrier options include down-and-out and up-and-in puts and calls, early exercise trigger CAPS options, and a variety of similar instruments. Related terms include Exotic Options, Stoption, Trigger Option. Also called Special Expiration Price Option, Limit Option. See also Exploding Option, In Option, Lookback Option, Out Option, Reset Option or Warrant (diagram), Deferred Start Option, Double Barrier Option, Down-and-In Call (diagram), Down-and-Out Call (diagram), Up-and-In Option, Strike-Step Option (diagram), Down-and-Out Put, Down-and-In Put.
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Glossary *
B
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