knock-out option

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Knock-out option

An option that- is worthless at expiration if the underlying commodity or currency price reaches a specific price level.

Knock-Out Option

An option contract that automatically expires, even before the expiration date, if the underlying asset reaches a certain price that would be disadvantageous to the option writer. If this price (called the knock-out) is reached, the option becomes worthless. Most of the time, the knock-out results in the holder losing the premium, though some knock-out options, known as rebate barrier options, refund part of it. See also: Barrier option.

knock-out option

An option that loses its entire value in the event the underlying asset crosses a predetermined price level.
References in periodicals archive ?
UNDEFEATED John Docherty has vowed to extend his 100% stoppage run to six straight knock-outs tonight.
The ability to take information from the model system to functional gene study with gain of function (e.g., transgenic) and loss of function (e.g., knock-out) mutations in analogous experimental systems such as the mouse is extremely powerful because of the genetic information available in mouse strains.
Hamed knows he has to spend serious time in making sure there is no slip-up in Foxwoods, Connecticut against Sanchez, who boasts 26 wins including 24 knock-outs - though he has one loss, an embarrassing first-round knockout to moderate junior bantamweight Edgar Garcia.
Viewers will then find out which of the local contenders make it through to the Knock-Outs - one stage away from The Voice's live shows.
Rasani, 26, appears to be a tougher opponent for Simpson but the Coventry man said: "He may have an impressive knock-out punch, but I am the British champion through hard work and ambition and that will carry me through this test."
The qualifiers will run for another two weekends with the best three Dubai teams joining five other sides from the Northern Emirates in knock-outs starting on April 11 at Al Mamzar.
"Luis now has a record of three fights, three wins and three knock-outs!
But a win over Monaco in their Group A showdown will clinch a place in the knock-outs and Gerrard is the trump card.
Unbeaten Duddy's opponent has been confirmed as Victor Lares, a Texan with 10 wins and one defeat (three knock-outs).
Mersey Travel put a great shift in, but could only manage two wins and two losses, which wasn't enough to see them progress into the knock-outs.
Meanwhile, the command has warned against the use of knock-outs, firecrackers and other forms of fireworks in the state during the Yuletide.
I am so proud that we qualified for the Abu Dhabi knock-outs, winning all our games.