A: Most OTC barrier options use continuous monitoring (any tick). Some exchange-listed barrier options (rare) use daily closing prices.
✅ As a writer, you sell barred calls to collect premium while capping your risk. If barrier is hit, you’re off the hook. barred call
Max loss = $0.70 If XYZ hits $59 at expiry and never touched $60 → payoff = $4.00, net profit = $3.30 (471% return). If XYZ touches $60 on any day → loss of $0.70. A: Most OTC barrier options use continuous monitoring