Up-and-In Call Option

Up-and-In Call Option: The Sniper

Cheapen right to buy, which springs to life when asset price rises past a barrier; like a sniper waiting for just the right market climb to take its shot.

i. Select Desired Direction [UP/DOWN]

ii. Will (WETH) move ‘a lot’? ( ‘Knock IN’ )

Will (WETH) move ‘not too much’? ( ‘Knock OUT’ )

iii. [UP/DOWN] [Knocks In ( effective ) / Knocks Out ( extinguished )] if (WETH) @ Expiry beyond barrier.

+ / UP / IN

Buy UP and In and pay premium if you think ETH @ Expiry UP from <strike price> and NOT INside ( > ) <barrier>; if NOT, premium lost.

- / UP / IN

Sell UP and In and earn premium if you think ETH @ Expiry NOT UP from <strike price> or INside ( < ) <barrier>; if NOT, pay ETH - strike

Up-And-In Call Option Contract

A Down-And-Out Call Option Contract (also called Down-And-Out Call Option) is a contract that gives the buyer (the owner or holder of the contract) the right to buy the Underlying Currency at the specified Strike Price upon exercise of the contract, if the Reference Price is equal or above the Barrier Level. The contract seller has the corresponding obligation to sell the Underlying Currency at the specified Strike Price if the Reference Price is equal or above the Barrier level upon exercise of the contract

Ual CK, B

Up-and-in call option with strike K and knock-in if ST ≥ B at expiry

Payout at expiry =

If ST < B: zero

If ST ≥ B: max(ST - K, 0)

Eg. Payout of an up-and-in call option on eth/$ with K=100, B=115