rebate barrier option

Definition

Type of knock-out option that provides a partial refund to the holder of the option if a knock-out occurs. A knock-out option is a type of option that expires, even before the expiration date, if the price of the underlying asset reaches a certain point. If a rebate barrier option is knocked out, the holder of the option will receive a partial rebate on the premium paid to the option writer.
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rebate rebound