Barrier Option

A type of option whose payoff is set to a specified fixed price if the final asset price is below the strike price; if not, the payoff is set to zero.

An option that differs from common American or European options in terms of the underlying asset or the calculation of how or when the investor receives a certain payoff. These options ...

A latent option contract that begins to function as a normal option ("knocks in") only once a certain price level is reached before expiration.

An option with a built in mechanism to expire worthless should a specified price level be exceeded. A knock option sets a floor or cap to the level which an option can reach in favor of ...

A type of option product that allows an investor to set not only the conditions that need to be met in order to receive a desired payout, but also the size of the payout he or she wishes ...

1. In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2. In equities, the common stock that must be delivered ...

A type of exotic option that gives an investor a payout once the price of the underlying asset reaches or surpasses a predetermined barrier. This type of option allows the investor to ...