BARRIER OPTION

Wait until calculator button appears. Sometimes You Need To Press Refresh

Graphical Representation of Option Price and Sensitivities

Barrier Options are options where the payoff depends on whether the underlying asset's price reaches a certain level during a certain period of time.
A particular type of Barrier Options is known as Knockout Option
the regular options will cease to exist if the underlying's asset's price reaches a certain barrier.
It holds the similar reason for Knockin Option where the options come to exist when the underlying's asset's price reaches a certain barrier.

Four types of barrier:

  1. Call Knockout, the barrier is generally below the strike price (H < X). It is also known as down-and-out option.
  2. Put Knockout, the barrier is generally above the strike price (H > X). It is also known as up-and-out option.
  3. Call Knockin, the barrier is generally below the stike price (H < X). It is also known as down-and-in option.
  4. Put Knockin, the barrier is generally above the strike price (H > X). It is also known as up-and-in option.

Pricing Models Page Available is a Swing Java Jar File if you just wish to run the models.