The valuation of barrier options prices : A methods review

Kabby, Williams (2022): The valuation of barrier options prices : A methods review. Published in: Revue Maghrébine Management des Organisations , Vol. 7, No. 1 (20 December 2022): pp. 1-14.

Abstract

This paper aims to identify existing methods to price barrier options. The question of research is to know main methods used to price barrier options. Findings of literature review based on four pricing models, which are used. In addition, they are most popular than other ones are recently known. Barrier options are some financial products qualified derivatives. Their functioning depends on the prices evolution that the underlying assets have taken during the lifetime. Barrier options have to be knocked out or activated if the barrier option price reaches the agreed limit or barrier. There are European, American and eight (08) types of barrier options

• Item Type: MPRA Paper
• Language: English
• Keywords: barrier options, pricing models, tree methods, Monte Carlo methods, standard European options
• Subjects: G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing ; Trading Volume ; Bond Interest Rates

References

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