Tag Archives : vanilla European call

In the Black-Scholes model, we can find the price of the option by the formulas below. In these, stock price is denoted by S, strike price is denoted by K, time to maturity is denoted by T , dividend rate is denoted by q, risk-free interest rate is denoted by…

Barrier options are path-dependent exotics that are identical in some ways to ordinary options. There are put and call, as well as there are some European and American varieties. But if the underlier reaches a predetermined level (barrier) then…