A Beginners Guide to Exotic Options

Aim: To summarise the key features of some of the major over-the-counter exotics.

 

Outcome: Completion of this module will enable financial advisers to understand the different options for managing risk exposure.

Abstract: Exotics allow businesses to manage risk exposure at an efficient price. With the use of electronic trading platforms, the popularity of exotics has increased and become more widespread. The key features of the most common types of exotic options, and their use, is described. Examples are provided to help illustrate their use.