Up-and-In Option


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.

  1. Barrier Option

    A type of option whose payoff depends on whether or not the underlying ...
  2. Up-And-Out Option

    A type of barrier option that becomes worthless if the price ...
  3. Option

    A financial derivative that represents a contract sold by one ...
  4. Vanilla Option

    A financial instrument that gives the holder the right, but not ...
  5. Knock-In Option

    A latent option contract that begins to function as a normal ...
  6. Exotic Option

    An option that differs from common American or European options ...
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