Wednesday, August 09, 2006

Barrier Options

Barrier Options are considered to be exotic derivatives. Exotics usually take a long time to price, and if you are architecting a trading system, you usually want to put a lot of computing power behind the calculations of exotics. Many trading firms look to Compute Grids and data caches to help speed up some of these calculations.

This explanation of Barrier Options has been taken from the Bank of New York website:

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