Consider two barrier options written on the same underlying stock, where both options have one year to expiry.

Option A is an up-and-in call option with a strike price of $13 and a barrier of $16. Option B is an up-and-in call option with a strike price of $13 and barrier of $15. The underlying stock has a current price of $14.

Which of the following is true?

Note: no calculations are necessary use your intuition!

Select one:

Option A and Option B will have the same price/premium since their strikes and expiries are identical.

Option A will trade at a higher price/premium than Option B.

Option A will trade at a lower price/premium than Option B.

Without doing the calculations, it is impossible to know which option will be more expensive.