Difference between Reverse Knock Out, Knock Out, Reverse Knock In and Knock In. Are any of them equivalent?

Is reverse knock out equivalent to knock in or knock out? What are the differences between them?

#exoticoptions

The four options you list are distinct from each other:

  • For knock-in and knock-out options, the barrier is set out of the money
    • Below the strike price for call options
    • Above the strike price for put options
  • For reverse knock-in and reverse knock-out options, the barrier is set in the money
    • Above the strike price for call options
    • Below the strike price for put options

Exotic options are in which L3 reading?

Under Asset Allocation they’re mentioned – merely mentioned – in the reading on currency management. They mention knock-in and knock-out options, but don’t give much detail. They do not mention reverse knock-in and reverse knock-out options.

Knock knock…

who’s…