Exotic Options: Considerations
Interactive

Exotic Options: Considerations

Intuition Publishing
Updated Sep 24, 2020

Here we consider some exotic options which have non-standard payoffs. We look at window barrier options and passport options where the payoffs are not stable over time, and then discuss digital (binary) options where the payoff jumps from one value to another. We follow this by describing some multi-dimensional classes of exotic option, such as basket options, quanto options, and rainbow options, and finish with an explanation of options on options.