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

The delta and gamma of knock-out options can both be positive or negative depending on the position of the underlying asset relative to the barrier level.

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