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

CFA Level III Derivatives
#1

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

#exoticoptions

#2

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
#3

Exotic options are in which L3 reading?

#4

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.

#5

Knock knock…

who’s…