Up-and-In Option

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DEFINITION of 'Up-and-In Option'

An option that can only be exercised when the price of the underlying asset reaches a set barrier level. This is a type of a knock-in barrier option.

Up-and-In Option

INVESTOPEDIA EXPLAINS 'Up-and-In Option'

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.

RELATED TERMS
  1. Barrier Option

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  3. Up-And-Out Option

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  4. Knock-In Option

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  5. Vanilla Option

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    The option ticker explains four main things about the option: the underlying stock, whether it is a call or a put option, ... Read Full Answer >>
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