Which of the following statements is accurate concerning knock-out call options?
A)The delta is positive if it is a down-and-out call but can be positive or negative if it is an up-and-out call.
B)The delta can be positive or negative,but the gamma is always positive.
C)The delta is always positive,but the gamma can be positive or negative.
D)The delta can be positive or negative and the gamma can also be positive or engative.

Question

Quizplus · Accepted Answer

For an up-and-out call for instance,the delta and gamma are positive when the option is at- or in-the-money and far from the barrier,but as the barrier is neared,the delta and gamma turn negative.

Which of the Following Statements Is Accurate Concerning Knock-Out Call