Answer: True

**Correct answer: True** Barrier options can have **negative vega** because higher volatility can increase the probability that the barrier is breached. For example: - For a **knock-out option**, higher volatility may make knockout more likely, which can **reduce** the option’s value. - Therefore, the option’s value may move **opposite** to volatility, creating **negative vega**. This is a key difference from many plain vanilla options, which usually have positive vega.

Author: Manit Arora