Results for tag: "Exotic Options"

Exotic options are a type of financial derivative instrument that is more complex than traditional options. They are typically used to hedge against specific risks or to speculate on the price of an underlying asset. Exotic options are typically more expensive than traditional options due to their complexity and the additional risk they carry. Exotic options are typically structured with features such as multiple exercise dates, multiple underlying assets, and multiple payment structures. These features allow investors to customize their options to meet their specific needs. They also allow investors to take advantage of opportunities that may not be available with traditional options. Exotic options are traded on the over-the-counter (OTC) market, which is a decentralized market where buyers and sellers negotiate directly with each other. This allows investors to customize their options to meet their specific needs. Some of the companies in the exotic options market include CME Group, Eurex, and ICE Futures. These companies offer a variety of exotic options, including binary options, barrier options, and digital options. Show Less Read more