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Exotic Option

   Also found in: Wikipedia 0.02 sec.
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.

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.


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features seminars on exotic options for drought-tolerant gardens, ideas on fire-safe landscaping and information about starting a garden using less water.
The guide offers exotic options from The Gambia to Nepal as well as Europe.
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.
 
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