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

BREAKING DOWN '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.

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RELATED FAQS
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    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>
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  4. How can an investor profit from a fall in the utilities sector?

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