Exotic Options - Barrier Options
This page is part of the Wikinvest Guide to Options. Related articles within this guide include:
Barrier Options are option contracts whose payoff depends on whether or not the price of the underlying asset crosses a certain level during the option's lifetime. There are four basic types of barrier options that have slightly different payoff structures. These options can all be written as either puts or calls. When barrier options are sold they are created with a specified expiration date, a strike price and a barrier price.