Why might we prefer to treat a European up-and-out call option as a portfolio of a vanilla

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Why might we prefer to treat a European up-and-out call option as a portfolio of a vanilla European call option and a European up-and-in call option?

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Introduces Quantitative Finance

ISBN: 978-0470319581

2nd edition

Authors: Paul Wilmott

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Question Posted: Sep 23, 2020 05:57 AM

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Why might we prefer to treat a European up-and-out call option as a portfolio of a vanilla

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An upandout option is a type of options contract that ceases to exist if the underlying ...View the full answer

Introduces Quantitative Finance

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