Exotic Options: Path Dependent Options
Interactive

Exotic Options: Path Dependent Options

Intuition Publishing
Updated Sep 24, 2020

The value of path dependent options is determined by the price path taken by the underlying asset before the option reaches maturity. There are three main types of path dependent option and we give an introduction to each here; Asian, or average rate, options, lookback options, and barrier options. We then discuss the distinction between weak and strong path dependence.