Basket options

Basket Options
Basket Options definition :
Packages that involve the exchange of more than two currencies against a base currency at expiration.

Basket options
Packages that involve the exchange of more than two currencies against a base currency at expiration.

basket options are options on a portfolio or "basket" of underlier values;
quantos are derivatives that have an underlier denominated in one currency, but settle in another currency without exposure to currency fluctuations.

Other examples of exotic options: basket options, which give the owner the right to receive two or more designated foreign currencies in exchange for a base currency, either at a prearranged rate of exchange or at the prevailing spot market rate; ...

Currency basket options have become prominent in modern portfolio management practices, as they allow investors to hedge all or most of their foreign currencies simultaneously, ...

Applies to derivative products. Group of stocks that is formed with the intention of either being bought or sold all at once, usually to perform index arbitrage or a hedging program.
Basket options ...

It could depend on more than one index (as in a basket options, Himalaya options, Peroni options, or other mountain range options, outperformance options, etc.)
There could be callability and putability rights.

Examples include spread options which substitute for a single underlying asset the spread or difference between the prices at expiration of tow underlying assets, exchange or outperform options. Also known as basket options.

See also: Base currency, Multinational, Multinational corporation, Multinational corporations, Exercise price