Quantum Support: Down-and-out barrier option A type of barrier option in which the spot price of the underlyingis set above the barrier level, and the price of the underlying must close lower in order for the option to be knocked out or cancelled. It is named "down-and-out" because the right to exercise the option disappears if the price of the underlyingisbelow the barrier.

13:05 ET Dow -154.48 at 10309.92, Nasdaq -37.61 at 2138.44, S&P -19.130 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 0 1 100001 0 1 0 1 1 0 1 0 00 0 1 1 1 0 1 100001 0 1 1 100001 13:05 ET Dow -154.48 at 10309.92, Nasdaq -37.61 at 2138.44, S&P -19.1313:05 ET Dow -154.48 at 10309.92, Nasdaq -37.61 at 2138.44, S&P -19.13

Wednesday, May 18, 2011

Down-and-out barrier option A type of barrier option in which the spot price of the underlyingis set above the barrier level, and the price of the underlying must close lower in order for the option to be knocked out or cancelled. It is named "down-and-out" because the right to exercise the option disappears if the price of the underlyingisbelow the barrier.