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Rebate Barrier Option

2020-08-05 17:27 浏览:806
A barrier option that offers a predetermined rebate, should the option be 'knocked-out.'
Should a rebate be enacted, it will be deducted from the premium 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.


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