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Graphical Representation of Option Price and Sensitivities
Barrier Options are options where the payoff depends on whether the underlying asset's price reaches a certain level during a certain period of time.
A particular type of Barrier Options is known as Knockout Option
the regular options will cease to exist if the underlying's asset's price reaches a certain barrier.
It holds the similar reason for Knockin Option where the options come to exist when the underlying's asset's price reaches a certain barrier.
Four types of barrier: