# Knock-in option (so also said in German)

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- Post ID: 589937
- Modified: 2023-07-25T21:02:27+00:00
- Language: en

## Definition

Form of contractual agreement common in the markets for foreign exchange and precious metals. Here, the call option only comes into effect if the underlying has exceeded a certain limit (barrier, knock-out level) (a latent option contract that begins to function as a normal option [knocking in = an instance of striking or colliding] only once a certain price level is reached before expiration). - On the other hand, one speaks of a knock-out option if the underlying has fallen below the barrier. - See barrier option, basis risk, option, path-dependent, sleepy warrant, underwater. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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