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Quotes of the day:
All that is gold does not glitter not all those that wander are lost.
A barrier option is a type of derivative where the payoff depends on whether or not the underlying asset has reached or exceeded a predetermined price. A barrier option can be a knock-out, meaning it expires worthless if the underlying exceeds a certain price, limiting profits for the holder and limiting losses for the writer. It can also be a knock-in, meaning it has no value until the underlying reaches a certain price.
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