A barrier option that is activated when the price of the underlying or other specified financial variable reaches a predetermined level (the instrike) prior to maturity.
(1) The term kick-in option is used when the instrike is in the money.
(2) A down-and-in option is activated when the price of the underlying asset or financial variable drops to the instrike and an up-and-in option is activated when the price of the underlying asset or financial variable increases to the instrike.