Section 26.9 gives two formulas for a down-and-out call. The first applies to the situation wher

Question

Accepted Answer

When $H=K$, the barrier is equal to the strike price.

For the first formula, when $H leq K$, w

Section 26.9 gives two formulas for a down-and-out call. The first applies to the situation where the barrier, $H$, is less than or equal to the strike price, $K$. The second applies to the situation where $H \geqslant K$. Show that the two formulas are the same when $H=K$.