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Exotic Options

  • Jürgen Franke
  • Wolfgang Karl Härdle
  • Christian Matthias Hafner
Chapter
Part of the Universitext book series (UTX)

Abstract

There is a multitude of complex, so-called exotic options, which are mainly used in OTC (over the counter) trading to meet the special needs of institutional investors. The most important types of exotic options are:
  • Compound Options

  • Chooser Options

  • Barrier Options

  • Asian Options

  • Lookback Options

  • Cliquet Options

  • Basket Options

In contrast, ordinary puts and calls, no matter whether European or American style, are frequently called plain vanilla options.

References

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Jürgen Franke
    • 1
  • Wolfgang Karl Härdle
    • 2
  • Christian Matthias Hafner
    • 3
  1. 1.Department of MathematicsTechnische Universität KaiserslauternKaiserslauternGermany
  2. 2.Ladislaus von Bortkiewicz Chair of StatisticsHumboldt-Universität BerlinBerlinGermany
  3. 3.Louvain Institute of Data Analysis and Modeling in Economics and StatisticsUCLouvainLouvain-la-NeuveBelgium

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