Answer: False

**Correct answer: False** For a **knock-out option**, the option becomes worthless if the barrier is breached. If the asset price is observed **less frequently**, there are **fewer chances to detect a barrier breach**. That means the option is **less likely to be knocked out**, so its value generally **increases**, not decreases. So decreasing monitoring frequency from continuous to daily does **not** decrease the value; it tends to increase it.

Author: Manit Arora