Template:M comp disc Equity Derivatives Knock-ins and Knock-outs
A JC-curated sub-division of the General Definitions section. We sub-group the Section 1 definitions into the following subgroups:
- Transactions — Sections 1.1 - 1.12
- Underliers — Sections 1.13 - 1.16
- Trade Details — Sections 1.17 - 1.24
- Exchanges, Clearing Systems and Currencies — Sections 1.25 - 1.37
- Trade Features — Sections 1.38 - 1.41
- Knock-ins and Knock-outs — Sections 1.42 - 1.51
These are the Knock-ins and Knock-outs definitions:
1.42. Knock-in Price
1.43. Knock-out Price
1.44. Knock-in Event
1.45. Knock-out Event
1.46. Knock-in Reference Security
1.47. Knock-out Reference Security
1.48. Knock-in Determination Day
1.49. Knock-out Determination Day
1.50. Knock-in Valuation Time
1.51. Knock-out Valuation Time
Mechanical provisions dealing with a fairly straight forward concept in the world of options, made more laborious even that usual by repeating themselves almost entirely for Knock-out Events and Knock-in Events, simply to capture a single difference: Knock-ins start something, and Knock-outs stop it.
The JC has done the world the inestimable service of creating the hybrid definitions: Knock-in/out Price, Knock-in/out Event, Knock-in/out Reference Security, Knock-in/out Determination Day and Knock-in/out Valuation Time. This won’t entirely alleviate the tedium of wading through the mechanical sludge, but it may prevent you scooping out your eyeballs with a spoon. Or at least delay your doing so.