Exotic Option financial definition of Exotic Option. Exotic Option finance term by the Free Online Dictionary.

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.

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Average Price Call Barrier Option Barrier Options Belgian Option Best-of-Two Option Binary Option Buy a Spread Caput Chooser Option Conventional Option Financial Innovation option OTC Options Over-the-Counter Option Plain Vanilla Shout Option Tandem Vanilla Option	One of the more exotic options would involve pumping CO2 into natural gas or oil fields near the end of their lives -- simultaneously burying the carbon dioxide and using the pressure to help extract the remainder of the fuels. New York touts climate-saving plan to lock away CO2 by AFP / AFP Global Edition One of the more exotic options would involve pumping CO2 into natural gas or oil fields near the end of their lives -- simultaneously burying the carbon dioxide and using the pressure to help extract the remainder of the fuels. New York touts climate-saving plan to lock away CO2 by AFP / AFP American Edition More complex, less easily understood options are called exotic options. Options 101 by E-PersonalFinance.com / E-PersonalFinance.com	Exempt Status Exemption Exemption Trust Exercer uma opcao Exercer une option Exercise Exercise Limit Exercise Loan Exercise Notice Exercise Price Exercise Settlement Amount Exercise Value Exercising the Option exhaust price Exhaustion Exhaustion Gap ExIm Bank Existencias Existing Home Sales Exit Fee Exit Strategy Exogenous Exogenous Uncertainty Exogenous Variable Exordium Clause Exotic Option Expansion Expansion monetaria expansion option Expatriate Expectations Hypothesis Expectations Hypothesis Theories Expectations Index Expectations Theory of Forward Exchange Rates Expectativas inflacionarias Expected Dividend Yield Expected Future Cash Flows Expected Future Return Expected Rate of Inflation Expected Rate of Return Expected Return Expected return on investment Expected Return-Beta Relationship Expected Spot Rate Expected Value Expected Value of Perfect Information Expedited Funds Availability Act Expense Account expense ratio expense stop Expensed	Exotic dancers Exotic Dancers Alliance Exotic Dancers' Association of Canada Exotic Dancers' Rights Association Exotic dancing Exotic Dancing/Dancer exotic disease exotic disease exotic disease exotic disease Exotic Disease Laboratory Exotic Disease Prevention and Control Exotic Eclectic Exotic Electro-Optics, Inc. Exotic Ethnic Exotic Feline Breeding Compound Exotic Feline Rescue Center Exotic Fish Society of Hartford Exotic Forest Pest Information System for North America exotic four-space exotic fuels Exotic Heritage Cat Association of America Exotic instruments Exotic Newcastle Disease Exotic nuclei Exotic Nuclei and Atomic Masses exotic nucleus Exotic Option Exotic Options exotic p's exotic p's exotic p's Exotic Pest Plant Council Exotic Pet Owners Uniting Exotic plant Exotic Plant Management Team Exotic Products of Tucson Exotic Radionuclides from Accelerator Waste for Science and Technology Exotic Revival Exotic Shorthair Exotic sphere exotic stream Exotic Ungulate Encephalopathy exotic viral disease Exotic viral diseases Exotic Visions in Liquid Exotic Wood-Boring Beetles Exotic-Diseases Sub-Committee of the Animal Health Committee exotica Exotical exotically exotically exotically exotically exoticism exoticism exoticism exoticism

Mentioned in

References in periodicals archive

Financial browser

Full browser

Average Price Call
Barrier Option
Barrier Options
Belgian Option
Best-of-Two Option
Binary Option
Buy a Spread
Caput
Chooser Option
Conventional Option
Financial Innovation
option
OTC Options
Over-the-Counter Option
Plain Vanilla
Shout Option
Tandem
Vanilla Option

One of the more exotic options would involve pumping CO2 into natural gas or oil fields near the end of their lives -- simultaneously burying the carbon dioxide and using the pressure to help extract the remainder of the fuels.

New York touts climate-saving plan to lock away CO2 by AFP / AFP Global Edition

New York touts climate-saving plan to lock away CO2 by AFP / AFP American Edition

More complex, less easily understood options are called exotic options.

Options 101 by E-PersonalFinance.com / E-PersonalFinance.com