The prices of these options tend to be lower than "vanilla options" as the ability to exercise the option is contingent on breaking the barrier.
Investment dictionary. Academic. 2012.
Down-and-In Option — A form of a knock in option whose payoff is determined by the price of the underlying asset sinking to the barrier price level. If the underlying asset does reach the barrier price level, the down and in option becomes a vanilla European call or… … Investment dictionary
put and call option — FINANCE ➔ option * * * put and call option UK US noun [C] FINANCE, STOCK MARKET ► DOUBLE OPTION(Cf. ↑double option) … Financial and business terms
Down-and-Out Option — A type of knock out barrier option that ceases to exist when the price of the underlying security hits a specific barrier price level. If the price of the underlying does not reach the barrier level, the investor has the right to exercise their… … Investment dictionary
Up-and-Out Option — A type of option that ceases to exist when the price of its underlying asset has reached a pre specified price level. This is a form of an exotic option. The prices of these options tend to be lower than vanilla options as the ability to exercise … Investment dictionary
down-and-in option — barrier option (or knock in option) that causes a plain vanilla call or put option to come into existence if the underlying asset price falls to a predetermined price level (the barrier price). Bloomberg Financial Dictionary … Financial and business terms
down-and-out option — 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). Bloomberg Financial Dictionary … Financial and business terms
Down-and-in option — Barrier option that comes into existence if asset price hits a barrier. The New York Times Financial Glossary … Financial and business terms
Down-and-out option — Barrier option that expires if asset price hits a barrier. The New York Times Financial Glossary … Financial and business terms
option — op·tion 1 / äp shən/ n 1: the power or right to choose; also: a choice made or available 2: a privilege of demanding fulfillment of a contract on any day within a specified time 3: a contract conveying in exchange for the payment of a premium a… … Law dictionary
Option (car magazine) — Option オプション A typical Option cover Categories Automobile Frequency monthly Publisher San Ei Shobo Publishing First issue 1981 … Wikipedia
