Rebate Barrier Option

外汇网2021-06-19 13:45:48 50

A barrier option that offers a pdetermined rebate, should the option be 'knocked-out.'

Should a rebate be enacted, it will be deducted from the pmium paid to the issuer, thus reducing the issuer's potential profit. For this reason, it is uncommon to see a rebate opportunity attached to a barrier option.