Knock-in/Knock-out (KIKO) options are a type of exotic derivative – or more specifically barrier options – which as the name suggests are an option consisting of a knock-in and a knock-out component. They have become increasingly more common around the world as a traded derivative due to the lower premium paid than on a vanilla option (a result of the unique dual barrier model) which has recently led to disaster for many businesses in South Korea.
Much like any other option, a KIKO can be traded as either an American or European option and can cover a range of underlying assets – from share to foreign exchange prices and anything in between. Unlike a vanilla (standard) option, however, a KIKO only operates within a specified window of spot prices; that is to say the option will only become active once a certain market spot rate is reached (knock-in) and will be voided if another spot rate is reached (knock-out) before maturity. Note that these two price levels can be either above or below the spot price (though in a KIKO the knock-in and knock-out events must be opposites) (Hull 2002). These specific spot rates are known as the barrier levels and a crossing of this barrier is known as a barrier or trigger event (New York Fed. 2000 and Cheng 2003). For a KIKO to become active it must first be knocked in; however, a knock-out event can occur at any time before the options maturity.
For example: an individual believes that the price of a specific share, which is currently $10, will rise, so they purchase a European call option with an exercise price of $10.50. This means that the person believes the price of the stock will rise by at least $0.50/share + premium paid. However, if this person also believes that the price of the stock...
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...ng Techniques for Professional Investors, 1st ed. McGraw Hill, New York
Yeon-hee, K 2009 ‘S. Korea high court rejects suit to suspend FX option deals’ Reuters [internet] Aug 23 2009
Trade Practices Act 1974
ASIC Regulatory Guide 168 ‘Disclosure: Product Disclosure Statements (and other disclosure obligations)’ 2007
Securities and Exchange Commission [internet] Sep 22 2009 http://www.sec.gov/about/whatwedo.shtml Accessed 23/9/2009
Financial Services Authority, 2009 ‘The Responsibilities of Providers and Distributors for the Fair Treatment of Customers (RPPD)’
ACCC ‘Court orders corrective ads by Commonwealth Bank’ [internet] Dec 10 2003 http://www.accc.gov.au/content/index.phtml/itemId/420894 Accessed 23/9/2009
Wood, D 2009 ‘KO-ed in Korea’ AsiaRisk May 2009 pp. 16-19
Won-bae, K 2009 ‘High Court finds for KIKO sellers’ JoongAngDaily [internet] August 26 2009
A credit transaction is when a consumer purchases a good or service and pays in the future. The use of a credit card can be useful as it is convenient, saving time and trouble. However, due to the extensive use of credit cards in Australia, legal issues has arisen such as the inability for consumers to repay their debts, unfair contract terms and inadequate procedures of credit providers. Prior to 1996, the Credit Act 1984 (NSW) was introduced as the only piece of legislation that regulated customer credit. However, because it only offered protection for less than 20% of consumers, the Consumer Credit Code was established in 1996 under the Consumer Credit (NSW) Act 1995 (NSW). This code is a set of uniform national rules about consumer credit transactions and has been adopted by all governments throu...
Electronic confirmations are often used to verify bank balances, but they can also assist in the verification of a company’s vendors. Therefore, I am going to request confirmations from Wayland Manufacturing Company’s vendors after the client accepts my request. The electronic confirmations will prove each vendor’s existence as well as the accuracy of the accounts payable subsidiary ledger balances. Evidence collected from third-party sources must remain confidential and I maintain my integrity by only seeking evidence I am authorized to review. If I decide to request Cash electronic confirmations without consent, I am violating integrity, confidentiality, and professional due care (AU Section 330-The Confirmation Process 1998) (Arens, Elder, & Borsum 2013) (AICPA Code of Professional Conduct
For Tenth National Bank, we have reason to believe that the client intercepted the paper confirmation. After we sent the paper confirmation to the bank, we received an email from Lou Jennings stating that the bank forwarded the confirmation directly to their office instead of sending it to the audit team. In addition, Mr. Jennings provided login credentials and a link to the bank’s website, which did not appear to be reliable. As per the video, “How to Fight Confirmation Fraud”, presented by the founder of confirmation.com, Brian Fox, a fictitious website can be created easily. Our skepticism toward the reliability of the website is based on the unresponsiveness of most of the links on the site; the only link that works is the login button. In addition the website appeared dated and rudimentary. Another factor we found quite strange is that the website only offers paper statement deliveries, which we find highly unusual since paper statements are easier to modify. Furthermore, based on the tracking provided by USPS, the letter is still in the shipping process with no indication that Tenth National Bank has officially received the request for confirmation. This further supports our theory that Lou Jennings intercepted the Tenth National Bank confirmation letter. In our o...
Tae Kwon Do is a Korean, unarmed martial art and is best known for its kicks (Park, 2001). The roundhouse kick is a turning kick and happens to be the most commonly used kick during competition (Lee, 1996). For this reason, the roundhouse kick will be analyzed in reference to sparring competition.
[8] Colonial Mutual Life Assurance Society Ltd v Producers and Citizens Co-operative Assurance Co. of Australia Ltd (1919) 26 CLR 110
After evalutating both the Black-Scholes Model and the Brownian Motion, we have come to know that the Black-Scholes Model is quite predictive as it gets close to the observed price. We found that with the Brownian motion it may take on negative values which results certain modelling prices to be frowned upon , hence making Black-Scholes Model more realistic. As we ventured in this study, we found that there is still more research to be done since many of the modern option models stems from the Black-Scholes model. Thus making the modern option pricing models more
There are over 3,600 different techniques in Kuk Sool Won (Tan). "Two things determine the techniques: ranking and how the martial artist is being attacked", Tan explains. Ranking is the color of the belt and the advancement of the belt color. Many popular techniques are the soft fighting techniques, such as joint locks, pressure points, grabbing techniques and throws (Hallander, "Come" 20).
Kempo teaches self-defense. Self-defense is the defense of one's person or interests through the use of physical force. The art of Kempo is a process of learning a skill through repetition. As stated in the article written by Pamela Knudson, she states “Aug. 05--Watch Casey Mihalek lead the white-clad, barefoot members of his karate class at ATA Martial Arts in Grand Forks and you'll see a well-orchestrated training regimen with a purpose: self-defense infused with discipline and respect”(Knudson). When you learn techniques such as the kicks and blocks from an instructor you will need practice to build these skills and the more you practice Kempo the more it seem like second nature. As stated in the article written by Kristin E. Holmes, she states “Genell, 46, a safety director for a demolition company, operated a karate studio for seven years, but decided to focus on teaching adaptive martial arts after being inspired during a stint at a camp for children with disabilities”(Holmes). Once you have acquired these skills you no longer have to think about the techniques you will automatically react with self-defenses moves.
“Options give you the right (without the obligation) to transact a security at a predetermined price within a certain time period. In a call option, the buyer has the right (but is not required) to buy an agreed quantity of a commodity or financial instrument (called the underlying asset) from a seller by a certain date (the expiry) for a certain price (the strike price). A put option is the right to sell the underlying stock at a predetermined strike price by a certain date” (Call Option vs Put Option, 2014).
can just give up the option premium and discard the options. However, if the company strongly
There is also the sale of shares in the Nairobi Stock Exchange online which makes the process faster and more convenient to those who want to buy and shares since the process is managed online. This saves time and money while reducing information search costs.
Put option. (2011, May 22). In Wikipedia, The Free Encyclopedia. Retrieved 02:44, May 25, 2011, from http://en.wikipedia.org/w/index.php?title=Put_option&oldid=430306749
"Tae" means foot (to kick), "kwon" means hand (to punch), and "do" represents way of life. Karate literally means "open hand" and signifies a heart devoid of corrupt intentions. Both martial arts strive to unify the mind, body, and spirit into "one entity", while aiming at the ultimate goal of helping to build a better and more peaceful world.
Wang, Jing 2008, ‘Why Are Exchange Rates So Difficult To Predict’, Economic Letter, Vol. 3, no. 6.
Depending on your karate school and style, some or all of the following may apply: