题目
A down-and-out call option is an option that:
选项
A.comes into existence when the underlying asset price falls to a designated barrier price.
B.comes into existence when the underlying asset price rises to a designated barrier price.
C.ceases to exist when the underlying asset price falls to a designated barrier price.
D.ceases to exist when the underlying asset price rises to a designated barrier price.
答案
C
解析
This is the definition of a down-and-out call. “Out” signifies that the option ceases to exist when the price moves “down” to a specified barrier.这就是向下敲出的定义。“out”意味着当价格向下移动到一个指定的障碍时，期权失效。