exotic option

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Exotic option

Refers to options that are more complex than simple put or call options. For example, a Caput is a call option on a put option. Exotic options trade over-the-counter.

Exotic Option

Any option contract that is not an American or European option. That is, an exotic option contains some provision that makes it different from a straightforward option contract with a strike price, underlying asset, and expiration date. For example, a chooser option allows the holder to decide whether the contract is a call or a put at some point over the contract's life. Also, an Asian option has no set strike price and is calculated as the average of some price listed in the contract and the market value of the underlying asset at the time of exercise. Most exotic options trade over-the-counter because their provisions make them too complex for the regulations of exchanges.

exotic option

An option with a nonstandard feature. A lookback option that allows the owner flexibility in selecting an exercise price is an example of an exotic option. Exotic options are traded in the over-the-counter market.
References in periodicals archive ?
With headquarters in Chicago, GlobalRisk services customers throughout the Americas, Europe and Asia-Pacific and provides analytics for futures, equities, indexes, exotic options and broad scope of OTC products including Interest Rate and Credit Default Swaps and Forex.
More exotic options include Thai Cocunut Curry Mussels (PS5.
During that time he has provided fair value reports to corporate clients on thousands of instruments ranging from swaps to exotic options across energy, interest rate, and foreign currency underlying markets.
There's no shortage of choice here - the menu runs to a good few pages - covering all the classics like onion bhajis and chicken bhuna, a handful of English dishes, like garlic mushrooms and prawn cocktail - as well as some more exotic options.
com/) is operated by a team of reputable investors with years of experience in risk management, derivatives, Forex trading and exotic options pricing.
Pastaweesy, recently opened in Dokki, provides a solid fare of pasta, offering traditional dishes like bolognese and white sauce with chicken, and more exotic options like oriental sausage and liver.
AEVEN if you don't go for the more exotic options like video clips or virtual tours, buyers these days expect to see a whole array of photographs, illustrating just about every conceivable aspect of a property.
Deepwater and Arctic drilling, as well as exotic options such as gas to liquids, are more expensive and risky, but previous estimates by the International Energy Agency (IEA) and other forecasters put their breakeven points well below $100 per barrel.
He shows how to price, in a Black-Scholes economy, the standard exotic options and host of non-standard ones, without generally performing a single integration or formally solving a partial differential equation.
When the decision is for inorganic or external growth, it is important to examine exotic options like access to a new market segment, going overseas etc, which if not properly executed can weigh heavily on the financial health of the company.
The pair, from Kinsale, Co Cork, had considered more exotic options, such as luxury Caribbean cruise or a safari in Africa.
There are also numerous exotic options on the market, including rugs spun from banana leaves, hemp or bamboo.