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 ?
He is fluent in both English and Mandarin Chinese, he is based in Houston and will be responsible for leading the development and enhancement of Enuit's pricing and risk framework and methodologies, providing broad valuation coverage for exotic options and asset-backed trade types, and implementing advanced price, volatility, and correlation models.
The firm also added enhanced instrument coverage along all verticals, such as liquidity, income, exposure and value, and embedded and exotic options.
More exotic options include chia seeds, an ancient Aztec food from the plant popularized by "Chia Pets." Evidence from mostly animal testing suggests chia seeds might improve cholesterol, triglycerides, and blood pressure.
The menu is just enough not to confuse a customer, and also includes some exotic options such as duck, ostrich and lamb rack to name a few.
Scholars and traders alike [1-6] have investigated the pricing and price dynamics of exotic options in effort to help investors trade them on the market.
Whether you are looking for healthy food items, local cuisines, or exotic options, Talabat will always satisfy your taste buds.
This is particularly true in rim blocks and rim liquids where brands such as WC Duck released a number of variations in fragrance with exotic options such as lavender and rosemary, eucalyptus and tea tree and pine proving a hit among consumers and helping to drive overall growth levels.
The company's platform is based on a proprietary pricing engine, which enables online brokers to price and market short-term Binary Options and Exotic Options.
Organic fast food like Sweetgreen, and exotic options like Just Falafel, are having great success in the city --perhaps we'll see such chains head East.
Barrhead Travel has plenty of exotic options to choose from, including the Maldives, Thailand and Mauritius.
More exotic options include Thai Cocunut Curry Mussels (PS5.75) with steamed mussels in a traditional, Thai green curry sauce.
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.