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Kick-in option
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.
Translations
Synonyms and variations
- Down-and-in option
- In option
- Knock-in option
- Up-and-in option