Down-and-Out Option: What it is, How it Works
By A Mystery Man Writer
Description
A down-and-out option is a type of knock-out barrier option that expires when the price of the underlying security falls to a specific price level.
![Down-and-Out Option: What it is, How it Works](https://study.com/cimages/videopreview/capture_180336.jpg)
Knock-Out Option - Overview, Types, Practical Example, knock out
![Down-and-Out Option: What it is, How it Works](https://www.daytrading.com/wp-content/uploads/2022/04/Knock-out-options-1.png)
Knock-Out Option - Overview, Types, Practical Example, knock out
![Down-and-Out Option: What it is, How it Works](https://www.awesomefintech.com/term/cards/knock-outoption/card_1.png)
Knock-Out Option - Overview, Types, Practical Example, knock out
![Down-and-Out Option: What it is, How it Works](https://zebrabi.com/wp-content/uploads/2023/04/how-to-use-Power-Query-to-transform-data-in-Excel.png)
Knock-Out Option - Overview, Types, Practical Example, knock out
![Down-and-Out Option: What it is, How it Works](https://www.investopedia.com/thmb/odmofdZA-uRLXCtVDFSKpoY8EEI=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/dotdash_Final_Knock_In_Option_Apr_2020-01-ea2e95a4d5af4c96aa23b7c3e185f498.jpg)
Knock-In Option Explained, With Different Types, Examples
![Down-and-Out Option: What it is, How it Works](https://fastercapital.com/i/Call-Option--Calling-the-Shots--Exploring-Knock-In-Call-Options--Examples-of-Knock-In-Call-Options.webp)
Knock-Out Option - Overview, Types, Practical Example, knock out
![Down-and-Out Option: What it is, How it Works](https://www.investopedia.com/thmb/6wkhkvuN6YDsCkxEbnqhuupluLU=/400x250/filters:no_upscale():max_bytes(150000):strip_icc()/skyscrapers-at-new-york-stock-exchange--view-from-below-944864660-0c9abd8372794e86ab7d7bbb6ee2190f.jpg)
What Is a Barrier Option? Knock-in vs. Knock-out Options
![Down-and-Out Option: What it is, How it Works](https://www.investopedia.com/thmb/KFSMhSDbRo2dFrWh3BQINGq8CQo=/400x250/filters:no_upscale():max_bytes(150000):strip_icc()/71017529-5bfc2b8dc9e77c0026b4f91d.jpg)
Knock-In Option Explained, With Different Types, Examples
![Down-and-Out Option: What it is, How it Works](https://www.investopedia.com/thmb/xh6QZVEPO3CcIiAjdC5DCRyp0gg=/400x250/filters:no_upscale():max_bytes(150000):strip_icc()/BarrierOption-27cf1c8c7cdb4a67b4177a8aafd77bde.jpeg)
What Is a Knock-Out Option? How It Works, 2 Types, Pros & Cons
from
per adult (price varies by group size)