chapter 14

Exotic Options

Learning Objectives

After reading this chapter, you will be able to understand

  • the meaning of exotic options
  • the specific features and usage of various types of exotic options
  • the application of different types of exotic options
Chapter Outline

14.1 Introduction

14.2 Asian Options

14.3 Binary Options

14.4 Look-Back Options

14.5 Barrier Options

14.6 Chooser Options

14.7 Compound Options

14.8 Contingent Premium Options

14.9 Deferred Strike Options

14.10 Rainbow Options

14.11 LEAP Options


Manoj Holiday Resorts operates a holiday resort owning and sharing scheme at 250 locations. There is considerable risk in the development and marketing of these resorts. The chief executive Manoj is planning to take ...

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