Derivative Engines - Options Handbook






Knock In:

Knock In event shows that option is valid and the options buyer can exercise at the expiry date. Knock In Barrier Options are opened as invalid. There is a Knock In Level and when this level is reached anytime until expiration, option becomes valid.

During the life of the option,

If knock in level is hit anytime, the knock in barrier option becomes a vanilla option and priced as vanilla option.

If knock in level is never hit, the knock in barrier option ends worthless.

Knoc In Barrier options can be priced by Derivative Engines Real Time Option Calculators.


Derivative Engines is a Real Time option calculator. Please see the online option pricers below.

Options Structured Products
Vanilla Options Dual Currency Deposit
Multiple Options Portfolio Asymetric Forward
Knock In Barrier Options Zero Cost Collar
Knock Out Barrier Options Seagull (3 Way Collar)