A barrier rebate is a fixed amount paid to the holder of a knock-out option when the barrier is hit, or to the holder of a knock-in option at expiry if it never knocked in.
Quantitative Finance · Glosarium
Quantitative Finance · Glosarium
A barrier rebate is a fixed amount paid to the holder of a knock-out option when the barrier is hit, or to the holder of a knock-in option at expiry if it never knocked in.