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K:
 K - the Commodity Futures Symbol which represents the May Delivery Month.

Kappa - a value representing the expected change in the price of an option.  Also known as Lambda.

Kilowatt - a standard unit of measure for electricity; the rate at which energy is supplied. Named for James Watt, inventor of the modern steam engine. See also Watt.

Kilowatt Hour - a unit of measure for electric energy equal to a thousandth of a megawatt hour. For example, a 100 watt lightbulb used for 10 hours equals one kilowatt hour (kWh). See also MegaWatt Hour.

Kholodnyi Model - a valuation model developed by the mathematician Valery A. Kholodnyi for use in valuing and hedging electric power price risks in environments of extreme price spikes.

KMV Model - a commercial implementation of the asset value model of credit risk.  [KMV was a boutique software firm that is now owned by Moodys.]

Knock-in Option - an option feature which triggers the activation of an option contract.  Also referred to as Down-and-In and Up-and-In, depending on the structure.

Knockout Option - an option that becomes worthless in the event that the underlying commodity or currency crosses a certain price level.

Kurtosis - a parameter describing the peakedness and tails of a probability distribution relative to the benchmark log normal distribution.


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