rebate barrier option


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.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
rebate rebound