Overview

Exotic options are instruments that vary one or more elements of the basic structure of plain vanilla options. This eCourse outlines the development of the market for exotic options and describes some of the most popular exotic option structures - such as Asian options, barrier options, binary options, and lookback options – and their associated sensitivities.

Objective

On completion of this course, you will be able to:

- Recognise the development of the market for exotic options and the main benefits of these instruments for investors
- Identify the different types of exotic option, such as Asian options, barrier options, binary options, and lookback options
- Recall how to analyse the sensitivities of key exotic options, such as Asian, barrier, and, binary calls

Content

Exotic Options - An Introduction
Topic 1: Overview
Topic 2: Types of Exotic Option
Topic 3: Option Sensitivities