BARRIER OPTION
Any of a variety of option structures (such as knock-in, knock-out, no touch, and double-no-touch-DNT) that place a high value on a specified price trading. A significant specified payoff is provided to the buyer of the option by the seller; in case the strike price is not ‘touched’ before expiry in a no-touch barrier. This gives the option seller an incentive to drive prices through the strike level. Meanwhile the option buyer has an incentive to protect the strike level.
