Unit 3: Exotic Options
Early Exercise Options
Nonstandard American Options: What it is: American options grant the holder the right to exerci...
Payoff-Modifying Options
Tailoring the Payout Structure These exotic options alter the standard call or put option payoff ...
Path-Dependent Options
The Journey Matters These exotic options have payoffs that depend not only on the underlying asse...
Multi-Asset Options
Diversifying the Underlying These exotic options have payoffs that depend on the performance of m...
Structured Options
Customized Payoff Profiles These exotic options are often built from combinations of standard opt...
Options on Options
Second-Order Derivatives These exotic options have, as their underlying asset, another option con...
Barrier Options
Triggering Payoffs with Price Levels Barrier options are options whose existence and/or payoff de...