Given a current stock price , strike price , and barrier , which of the following statements is most valid?
A) Given , if the barrier is moved lower, then a down-and-in put increases in value and a down-and-out put falls in value.
B) Given , if the barrier is moved lower, then a down-and-in put and a down-and-out put both increase in value.
C) Given , if the barrier is moved lower, then a down-and-out call increases in value and a down-and-in call decreases in value.
D) Given , if the barrier is moved lower, then a down-and-out call and a down-and-in call both increase in value.
Correct Answer:
Verified
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