exotic option

Exotic Option

Any non-standard option.

Notes:

This is the opposite of a plain vanilla option.

See also: Barrier Option, Down-and-In Option, Down-and-Out Option, Equity-Linked Foreign Exchange Option - ELF-X, Option, Quanto Option, Vanilla Option

---

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

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.