As the barrier is observed more frequently, a knock-out option becomes: choose one)
A) More valuable
B) Less valuable
C) There is no effect on value
D) May become more valuable or less valuable

Question

Quizplus · Accepted Answer

A knock-out option becomes less valuable as the barrier is observed more frequently because there is a higher chance of the barrier being breached, which would terminate the option.

As the Barrier Is Observed More Frequently, a Knock-Out Option