Suppose an option knocks in at H 1 > S , and knocks out at H 2 >H 1. Suppose that K < H 2

Suppose an option knocks in at H1> S, and knocks out at H2 >H1. Suppose that

K 2 and the option expires at T . Call this a "knock-in, knock-out" option. Here is an equation summarizing the payoff to this option (note that because H2> H1, it is not possible to hit H2 without hitting H1):

What is the value of this option?

if Hi not hit Payoffmax(0, ST K) if H hit and H2 not hit if Hi hit and Ho hit