# Documentation/Calc Functions/OPT BARRIER

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## Function name:

OPT_BARRIER

## Category:

Financial Analysis

## Summary:

Calculates the pricing for a barrier option, using the Black-Scholes option-pricing model.

## Syntax:

OPT_BARRIER(**Spot**; **Volatility**; **Rate**; **Foreign Rate**; **Maturity**; **Strike**; **Lower Barrier**; **Upper Barrier**; **Rebate**; **Put Call**; **In Out**; **Barrier Monitoring**[; **Greek**])

## Returns:

Returns a real number which is the pricing for a barrier option, using the Black-Scholes option-pricing model for the given parameters.

## Arguments:

**Spot** is a positive real number or a reference to the cell containing that number which is the price/value of the underlying asset and should be greater than 0.0.

**Volatility** is a positive real number or a reference to the cell containing that number which is the annual percentage volatility of the underlying asset expressed as a decimal (for example, enter 30% as 0.3). The value should be greater than 0.0.

**Rate** is a real number or a reference to the cell containing that number which is the continuously compounded interest rate. This is a percentage expressed as a decimal (for example, enter 40% as 0.4).

**Foreign Rate** is a real number or a reference to the cell containing that number which is the continuously compounded foreign interest rate. This is a percentage expressed as a decimal (for example, enter 50% as 0.5).

**Maturity** is a real number or a reference to the cell containing that number which is the time to maturity of the option, in years, and should be non-negative.

**Strike** is a real number or a reference to the cell containing that number which is the strike price of the option and should be non-negative.

**Lower Barrier** is a real number or a reference to the cell containing that number which is the predetermined lower barrier price; set to zero for no lower barrier.

**Upper Barrier** is a real number or a reference to the cell containing that number which is the predetermined upper barrier price; set to zero for no upper barrier.

**Rebate** is a real number or a reference to the cell containing that number which is the amount of money to be paid at maturity if the barrier is hit.

**Put Call** is a string or a reference to the cell containing that string that defines whether the option is a put (“p”) or a call (“c”).

**In Out** is a string or a reference to the cell containing that string that defines whether the option is knock-in (“i”) or knock-out (“o”).

**Barrier Monitoring** is a string or a reference to the cell containing that string that defines whether the barrier is monitored continuously (“c”) or only at the end/maturity (“e”).

**Greek** is a string argument or a reference to the cell containing that string. If omitted or set to “value”, “v”, “price”, or “p”, then the function simply returns the option price. If another valid string is entered, the function returns price sensitivities (Greeks) to one of the input parameters.

- The valid options, in this case, are as follows.
- “delta” or “d”.
- “gamma” or “g”.
- “theta” or “t”.
- “vega” or “e”.
- “volga” or “o”.
- “vanna” or “a”.
- “rho” or “r”.
- “rhof” or “f”.

- If for any of the above arguments, the mentioned constraints are not followed then, the function returns an error value.

## Additional details:

- For relevant background information, visit the Options (finance) and Black-Scholes model Wikipedia pages.

## Examples:

Formula | Description | Returns |
---|---|---|

=OPT_BARRIER(30;0.2;0.06;0;1;40;25;0;0;"c";"o";"c") | The function calculates the pricing for a barrier option, calculated using the Black-Scholes option pricing model. | 0.424281900452897 |

=OPT_BARRIER(50;0.4;0.05;0;0.5;65;0;80;0;"p";"o";"c";"e") | The function calculates the pricing for a barrier option, calculated using the Black-Scholes option pricing model. | 10.1584598399095 |

## Related LibreOffice functions:

## ODF standard:

None

## Equivalent Excel functions:

None