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Knock-out option

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Knock-out Option
A knock-out option is a type of barrier option that expires worthless if a specific price threshold is crossed by the option's underlying security. A knock-out option is typically a currency or commodity option.

 


Knock-out option
An option with a built in mechanism to expire worthless should a specified price level be exceeded. ...

Knock-Out Option. An option that is worthless at expiration if the underlying commodity or currency price reaches a specific price level.
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Knock-out options: these lapse if the price goes above or below a certain level. They can be much cheaper than vanilla options as much of the value of options greatly dependent on the chances of extreme circumstances.

Knock-in / knock-out option
See barrier option
Kurtosis
A measure of the extent to which probability is concentrated more around the mean and in the tails, rather in the mid-range, relative to normal distribution.

com knock-out option A Knock-Out option is an exotic option, commonly used for commodities and currencies,... Know Your Customer A guideline stated or implied by various securities regulatory bodies, requiring...

A common example is the barrier option, which itself comes in various forms such as knock-in options and knock-out options (and reversed versions of both) that can be either single-barrier options or double-barrier options.

put in by-hand and represent factors that ensure the correct behaviour of the price of an exotic option near a barrier: as the knock-out barrier level B of an option is gradually moved toward the spot level S0, the BSTV price of a knock-out option ...

Down And Out Option definition :
Barrier option (or knock-out option) that initially is a plain vanilla option, but which ceases to exist if the underlying security falls to a predetermined level (the barrier price).
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DOWN-AND-OUT OPTION - Barrier option (or knock-out option) that initially is a plain vanilla option, bu...
DOWN-TICK - Refers to a trading transaction which is executed at a lower price than the preceding one. ...

Also refers to illegally increasing the face value of a check by changing the numbers on the check.
In the context of securities, refers to the manipulation and inflation of stock prices.
Knock-out option ...

Barrier options include Knock-in options and Knock-out options. [TMAC] barter Trade of goods for other goods without the use of money or a third party. [ITDS] base metal Copper, aluminum, lead, nickel, tin.

See also: Exercise price, Debt ratio, Internal rate of return, Option premium, Fraud

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