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exotic option


Definition
A category of options which includes complicated components and complex payoffs. Its payoff or other key values often depend on outside factors which vary over time, such as exchange rate. Because of their complexity, exotic options are often traded over the counter rather than through an exchange. Asian-style options are one type of exotic options. opposite of plain vanilla option.

Related Terms

barrier option -  More

over the counter derivative -  More

caput -  More

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