kick-in kick-out (KIKO) options?

[Lucky]

I read an article this morning about Korean businesses recently losing over 60 billion won on kick-in kick-out (KIKO) currency options.

I can't find any details about what those are.
Anyone care to enlighten?

 

[Equalizer]

These are bog standard exotic (read anything not vanilla Euro or American) Options, commonly referred to as Barrier Options.

A KIKO is simply a double barrier option.

Crossing of a barrier is an event that knocks in (activates) an inactive option, or knocks-out (de-activates) an active option. These are more common in FX.

Double barrier options are usually priced using semi-analytic or pure numerical techniques.

Also, google is your friend:
https://gm.bankofny.com/Derivatives/ProductNotes/Currency.aspx?RowIndex=8

 

[Lucky]

Thanks, I've got a handle on barriers, had never heard the term kick-in kick-out used.