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hi this is David Harper Bionic turtle Id like to briefly illustrate a barrier stock option which is an exotic stock option the key difference between a barrier and regular stock option is that we have an additional term here called H in addition to s the stock price and K the exercise or strike price both of those attached to a regular option we also have here H which is the barrier level so theres two basic kinds of barriers a knock in or a knock out option in the case of a knock in if we consider this is the strike price here at time zero then the barrier option in the case of a knock in option does not exist initially until the stock if we go forward in time bdocHubes the barrier level here shown by H once the stock docHubes the barrier level here the option is knocked into existence so lets say dark blue here and then that becomes an option with a strike price of K and so its at this point that its knocked in looks like a regular option but it has to cross the barrier so the kno