Consider two paths A and B for stock prices in a barrier option setting that result in the same terminal price.Paths A and B will have different payoff consequences for the barrier option if
A)Path A crossed the barrier before maturity while Path B did not.
B)Both paths crossed the barrier prior to maturity but Path A re-crossed it while Path B did not.
C)Neither path crossed the barrier prior to maturity.
D)All of the above.

Question

Quizplus · Accepted Answer

If both crossed the barrier or neither did,they have the same payoff implications.

Consider Two Paths a and B for Stock Prices in a Barrier