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Exotic options.

With ``exotic'' options we think of any option with a more complicated payoff structure than the usual put and call payoff structures. There is virtually an unlimited number of possible exotic options available, only the imagination is the limit. In practice there is only a few that have seen much use, and we will look at some examples of these. For a large number of analytical solutions of exotic options, see Rubinstein (1993).



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next up previous contents index
Next: Lookback options. Up: Financial Numerical Recipes. Previous: Convexity   Contents   Index
Bernt Arne Odegaard
1999-09-09