ASM 9th ed #14.11

[Almost_Done]

why is Option B: up-and-in put, barrier 60, strike 05 always greater than Option E: Gap put trigger 60 strike 50? If stock price stays at 45, isn't it true that E will pay $5 but B doesn't pay (because it never reaches the barrier)?

[Abraham Weishaus]

I agree, the logic in the solution is erroneous since the gap put only pays (a positive or negative amount) when the price is below 60.