A Barrier option has
not only a strike price but also a barrier level and sometimes a rebate.
A rebate is a fixed amount that is paid if the option cannot be exercised because the barrier
level has been reached or not reached. The payoff for this type of option depends on whether the
underlying asset crosses the predetermined trigger value (barrier level), indicated by
Barrier
, during the life of the option. For more information, see Barrier Option.