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Template:Eqderiv Knock-In and knockout summ: Difference between revisions
Template:Eqderiv Knock-In and knockout summ (view source)
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With a {{eqderivprov|Knock-in Event}}, nothing happens until the event — the Transaction “knocks in” — and then you’re in business. With a Knock-out Event, ''everything'' happens until the event, and then pop, you’re out. | With a {{eqderivprov|Knock-in Event}}, nothing happens until the event — the Transaction “knocks in” — and then you’re in business. With a Knock-out Event, ''everything'' happens until the event, and then pop, you’re out. | ||
The concept of Knock-ins and Knock-outs is, thus, basically simple but good GOD {{icds}} make a meal of it. If you stipulate a {{eqderivprov|Knock-in Price}} ''below'' your strike price, if the {{eqderivprov|Underlier}} falls far enough to hit that price, or go below it, you have a {{eqderivprov|Knock-in Event}}. If your {{eqderivprov|Knock-in Price}} is ''above'' your initial strike, then the {{eqderivprov|Underlier}} has to go ''up'' to hit it. Whether you have hit it is measured at specified certain {{eqderivprov|Knock-in Valuation Time}}s on {{eqderivprov|Knock-in | The concept of Knock-ins and Knock-outs is, thus, basically simple but good GOD {{icds}} make a meal of it. If you stipulate a {{eqderivprov|Knock-in Price}} ''below'' your strike price, if the {{eqderivprov|Underlier}} falls far enough to hit that price, or go below it, you have a {{eqderivprov|Knock-in Event}}. If your {{eqderivprov|Knock-in Price}} is ''above'' your initial strike, then the {{eqderivprov|Underlier}} has to go ''up'' to hit it. Whether you have hit it is measured at specified certain {{eqderivprov|Knock-in Valuation Time}}s on {{eqderivprov|Knock-in Determination Date}}s. | ||
Exactly the same goes for Knock-outs, only in mirror image. | Exactly the same goes for Knock-outs, only in mirror image. | ||
Can we envisage a circumstance in which the {{eqderivprov|Knock-in Reference Security}} is not the {{eqderivprov|Underlier}}? Well, I can’t but I am sure someone at [[Goldman]] could think of one. | Can we envisage a circumstance in which the {{eqderivprov|Knock-in Reference Security}} is not the {{eqderivprov|Underlier}}? Well, I can’t but I am sure someone at [[Goldman]] could think of one. | ||