Up-and-Out Option

	Definition of 'Up-and-Out Option' A type of option that ceases to exist when the price of its underlying asset has reached a pre-specified price level.
	Investopedia explains 'Up-and-Out Option' This is a form of an exotic option. The prices of these options tend to be lower than "vanilla options" as the ability to exercise the option is limited.

Related Definitions

Exotic Option

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 ...
Read More »
Option

A financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to ...
Read More »
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.
Read More »

Disbanding The Euro	Is Bank Of America In Danger?		The Greatest Currency Trades Ever Made	The Enron Collapse: A Look Back
	Day Trading Strategies For Beginners	The Biggest IPO Flops	How HELOCs Can Hurt You