Knock-out options with premium: This is to knock-out options with an additional agreement: the option expires, because the barrier has been reached, a previous premium is paid as compensation. This option is often considered not as a separate type of barrier options, since they can be represented as a linear combination of knock-out and digital barrier option as well as Forex VPS.

Is not exercised , the value of an American call of the European call. The reason is that the call is exercised after dividend payment at the end. The lower bound on the European call value (after dividend payments) is known, It is the ex – dividend price minus the over the remaining term discounted strike price. Comparing the first option with the calculated lower bound of the second possibility.

To show that on the record date is no jump in the option values present: The Call of the stock before dividends is equal to the value of call after the dividend payment. The dividend discount is no surprise and is therefore included in the call price before the distribution date of Forex VPS.

This is proved using proof by contradiction: The call price is greater than the call before dividend distribution by price. Then an arbitrage strategy: Thus, a gain can be achieved by taking a short position of European calls before distributions and close the position after the distribution is greater than zero realize. It consists of the call before the call after dividend payout minus what must be assumed to be zero even greater. Thus, no dividend effect can be observed with the call. In terms of stock, however, there is a dividend discount on Forex VPS.

With digital barrier options, no strike is agreed. A predetermined nominal value is paid if the barrier was reached during the term. There are a number of complex digital barrier options instruments based on the concept of barriers and Forex VPS.

Dynamic barriers: The barriers condition is amended to specify the knock-out or knock-in level, that can change in the course of time. For example, it may be agreed that the underlying in the first year is not less than 90, must not fall below 80 in the second, or that the course S_t at any time t \ in [0 , T] under the function B ( t) = B_0 e ^ { rt } must fall. This is especially advantageous for long duration since the expected exponential increase in the price may be considered.

Tunnel options provide the broadest possible generalization of the barrier option: The option expires when the price falls below a (possibly dynamic) lower limit or rises above a ceiling.