Structured Products

Knock-Out Option

Definition

What is Knock-Out Option?

A barrier option that ceases to exist after the barrier is reached.

Example in practice

The call disappears when the share trades above the upper barrier.

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An investment combining debt and derivatives to create a defined payoff.

A structured debt instrument designed to return some or all principal at maturity, subject to issuer credit and terms.

A structured note whose principal may be reduced if specified market conditions occur.

A statistical measure tracking the performance of a defined group of securities or assets.

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