A reverse convertible that is subject to a knock-out barrier and involves the sale (writing) of a knock-out put by the investor (holder) to the issuer. The put option is deactivated or “knocks-out” if the underlying stock trades above some specified barrier level or lock-up level (e.g., 110% or so). The protection provided to the issuer will cease to exist in the event that the put knocks out.
March 10, 2025
