Rebate Barrier Option
A barrier option that offers a predetermined rebate, should the option be 'knocked-out.' Investopedia Says:
Should a rebate be enacted, it will be deducted from the premium paid to the issuer, thus reducing the issuer's potential profit. For this reason, it is uncommon to see a rebate opportunity attached to a barrier option. Related Terms:
Barrier Option
Double Barrier Option
Exotic Option
Knock-In Option
Knock-Out Option |