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Kappa: A measure of the sensitivity of the price of an option to a change in its implied volatility.
Kassenobligation: German financial instrument traded on the Euromarkets.
Key currency: Small countries, which are highly dependent on exports, orientates their currencies to their major trading partners, the constituents of a currency basket.
 
Kiwi: Slang for the New Zealand dollar.
Kondratieff Cycle: Long term economic cycles, named after an economist who identified 50-60 year economic cycles.
Knock in: A process where a barrier option (European) becomes active as the underlying spot price is in the money. Knock out has a corresponding meaning although the option may permanently cease to exist.

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