Lee, Hangsuck; Ko, Bangwon; Lee, Minha - 2023
European-type payoffs from a static hedging perspective. Using the reflection principle of Brownian motion, we develop how to … construct an exact static hedging portfolio consisting of simple discrete barrier options under the Black-Scholes model. This … barrier options, while overcoming the drawbacks of dynamic hedging. We illustrate our result with numerical examples, and …