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Knock-Out Warrant
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Provisions should be checked carefully because there can be many kinds of knock-out warrants. One type of knock-out warrant combines a long call or a long call spread with a knock-out put that assures the holder of a minimum return unless the price of the underlying exceeds the knock-out trigger price at some time during the life of the option. If the knock-out price is reached, the put expires and the put's minimum return protection expires with it.
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