A binary option that pays its holder a fixed amount (payoff) at expiration if the underlying price/ rate touches (i.e., reaches from above, or upwardly) an instrike below the spot price prior to, or by, expiration date. In other words, the option becomes active the current price of its underlying reaches, from above, the pre-set strike price (knock-in price) over the course of the option’s life.
January 31, 2024