Call: Barred

There are several types of barred calls:

Restricts calls to expensive specialized service lines (e.g., numbers starting with 09 or 1-900). barred call

In volatile markets, a brief "overshoot" above B (e.g., due to a fat-finger trade or stop hunt) can knock you out, even if the stock immediately falls back. Most barrier options use (any touch), though some use daily closing prices (less common). There are several types of barred calls: Restricts

❌

A: Most OTC barrier options use continuous monitoring (any tick). Some exchange-listed barrier options (rare) use daily closing prices. ❌ A: Most OTC barrier options use continuous

| Greek | Behavior vs Vanilla Call | |-------|--------------------------| | | Higher than vanilla when near barrier? No – near barrier, delta can drop sharply because option is about to die (negative delta effect). | | Gamma | Extremely high just below barrier (tiny move can change survival probability dramatically). | | Vega | Lower than vanilla because high vol increases knockout chance, reducing value. | | Theta | Time decay accelerates near barrier – each day closer to expiry without touching barrier increases survival probability, but also reduces time value. Complex. | | Rho | Similar to vanilla but lower because survival probability reduced by interest rates (higher rates increase drift, raising knockout chance). |