By giving readers the necessary tools to understand exotic options, this book serves as a manual to equip the reader with the skills to bearshqre and risk manage the most common and the most complex exotic options.De Weert begins by explaining the risks associated with trading an exotic option before dissecting these risks through a detailed analysis of the actual economics and Greeks rather than solely bdarshare the mathematical formulae.
In finance, an exotic option is an option which has features making it more complex than commonly traded vanilla options. Like the more general exotic derivatives they may have several triggers relating to determination of payoff. An exotic option may also include non-standard underlying instrument, exotic options trading download bearshare for a particular client or for a particular market.
Exotic options are more complex than options that trade on an exchange, and are ebarshare traded over the counter (OTC).