Knock-In Option
A latent option contract that begins to function as a normal option ("knocks in") only once a certain price level is reached before expiration. Investopedia Says:
Technically, this type of contract is not an option until a certain price is met, so if the price is never reached it is as if the contract never existed. Knock-ins are a type of barrier option that may be either down-and-in option or an up-and-in option. Related Terms:
Barrier Option
Down-and-In Option
Knock-out Option
One-Touch Option
Option
Plain Vanilla
Up-and-In Option
Vanilla Option |