Barrier options can have very large and non-linear sensitivities near the barrier.
As the underlying approaches the barrier, the option’s value may change very rapidly.
This can produce deltas greater than +1 or less than -1.
This behavior is unlike plain vanilla options, whose deltas are typically bounded between -1 and +1.
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Question 15.03. True or false: While plain vanilla option deltas must lie within (-1.0, +1.0), barrier option can have deltas greater than 1.0 or less than -1.0.
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Last updated: April 18, 2026 at 11:32
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A
True
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B
False
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Question 15.03. True or false: While plain vanilla option deltas must lie within (-1.0, +1.0), barrier option can have deltas greater than 1.0 or less than -1.0. | Financial Risk Manager Part 1 Quiz - LeetQuiz