exotic option investment & finance definition
An option with a nonstandard feature. A lookback option that allows the owner flexibility in selecting an exercise price is an example of an exotic option.
Exotic Option Any non-standard option.
Expiration Date The end of the life of an option.
Ex-Date The first day a stock is traded, where the buyers are not entitled to the dividend that was previously declared ...
Exotic options
Options with non-standard pay-out structures usually traded over-the-counter (OTC) and designed specifically for a user.
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Exotic Options
A Barrier Option has a component in addition to the strike price and the expiry date. This component is called a ‘trigger’.
Exotic Option
An option that differs from common American or European options in terms of the underlying asset or the calculation of how or when the investor receives a certain payoff.
Exotic option
Any of a wide variety of options with unusual underlying assets or terms. For example, rainbow options depend on the amount by which one asset outperforms another.
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Exotic Options: Any of a wide variety of options with non-standard payout structures or other features, including Asian options and lookback options. Exotic options are mostly traded in the over-the-counter market.
EXOTIC OPTIONS Generic term for the more sophisticated option strategies which have features over and above the basic contracts.
EXPIRATION DAY Last day on which an option can be exercised after which is expires.
Exotic Options: Any of a wide variety of options with non-standard payout structures, including Asian options and Look back options. Exotic options are mostly traded in the over-the-counter market.
Exotic Option that allows the holder to lock-in gains on the underlying security during the life of the option. Also called step-lock option.
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Step-Lock Option (finance term) ...
Exotic option
Option with more complex payment structures than those of plain-vanilla options. Example: Asian-style options.
Expiry
The contractually agreed date on which a limited-term derivative expires.
Exotic option
Refers to options that are more complex than simple put or call options. For example, a Caput is a call option on a put option. Exotic options trade over-the-counter.
An exotic option that is transacted in the present, but that at some specified future date is chosen to be either a put or a call option.
A type of exotic option that gives an investor an agreed upon payout if the price of the underlying asset reaches or surpasses one of two predetermined barrier levels.
Vanilla and exotic options
The most common types of option are the simple American and European options which have fixed strike prices and expiry dates. These are common, mathematically simple, and comparatively well understood.
Caput
An exotic option. It represents a call option on a put option. That is, you purchase the option to buy a put option at a particular price on or before the expiriation date.
2.- The prices of exotic options given by models based on Black-Scholes assumptions can be wildly inaccurate, so dealers are motivated to find models which take the volatility smile into account when pricing exotic options.
Exotic Option Any Option that is well out of the ordinary, hence not a "Plain Vanilla" Option. The list of Exotic Options changes over time.
The contract can also be on an exotic option.
Buyers and sellers of options do not (usually) interact directly; the options exchange acts as intermediary and quotes the market price of the option.
Lookback Option: An exotic option whose payoff depends on the minimum or maximum price of the underlying asset during some portion of the life of the option.
Lot: A unit of trading. See Even Lot, Job Lot, and Round Lot.
Dynamic Hedging : Managing Vanilla and Exotic Options by Nassim Nicholas Taleb
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LookBack Options -Exotic options which allows the holder to "Look Back" at the price action of the underlying asset during expiration to decide the optimal price at which to exercise the Lookbacks Options. Read More About LookBack Options Here! ...
Definition
Lookback option
An exotic option whose payoff depends on the minimum or maximum price of the underlying asset during some portion of the life of the option.
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The real use of the model is to value somewhat more exotic options such as bermudan swaptions on a lattice or other derivatives in a multi-currency context such as Quanto Constant Maturity Swaps, as explained for example in Brigo and Mercurio (2001).
Finally, the options market exchange is the most diverse and most inventive options markets. He is responsible for virtually all forms of so-called exotic options or second generation (barrier options, Asian options, options on options, etc..).
A simple option whose terms and conditions do not include any provisions other than exercise style, expiry and strike. To compare with exotic options which have additional terms.
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While the process for calculating Asian options is somewhat more detailed than an American-style option or the European-style option, the task is still relatively straightforward when compared to exotic options.
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com knock-out option A Knock-Out option is an exotic option, commonly used for commodities and currencies,... Know Your Customer A guideline stated or implied by various securities regulatory bodies, requiring...
These are very exotic options. [Harvey] These options operate in the same way as standard options, ...
 See also: Exotic, Option, Options, Market, Trading
  
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