|visits||member for||1 year, 11 months|
|seen||Feb 2 '13 at 18:13|
Delta of a Down and Out Call
Thanks for responding to my question! But why is delta decreasing close to the barrier? I was thinking that, if I am close to the barrier and therefore close to being knocked out, it is all the more important when the stock price increases since it reduces the risk of the option being extinguished. Another question: Does delta depend on the risk free interest rate and if it does, how so?