Updated Apr 14, What is a Knock-In Option A knock-in option is a latent option contract that begins to function as a normal option "knocks in" only once knockn опцион certain price level is reached before expiration.
Basics of a Knock-In Option Knock-in options are one of the two main knockn опцион of barrier options, with the other type being knock-out options.
A knock-in option is a knockn опцион of contract that 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.
However, if the underlying asset reaches a specified barrier, the knock-in option comes into existence. Knockn опцион difference between a knock-in and knock-out option is that a knock-in option comes into existence only when the underlying security reaches a barrier, while a knock-out option ceases to exist when the underlying security reaches a barrier.
Что такое Колл опционы и Пут опционы выгоды и риски Call и Put опционов в инвестировании в акции
A trader may choose the cheaper relative to a comparable vanilla barrier option if they feel it is quite likely the underlying will hit the barrier. There are two types of knock-in options: down-and-in and up-and-in. It is this right that gives the option value.