Need info on latest exotic options

hamb · March 8th, 2005, 4:19 am

Hi, Can someone provide me some infomation on latest or relatively new exotic options used in the industry? Like what are the payoffs, in what condition they are preferred by investors, their advantages and disadvantages, the risk of using them and how to slove it. Thanks. Hamb

doublebarrier2000 · March 10th, 2005, 1:24 pm

There are different exotics for different underlyings:in the late 90's people were trading exotic payoffs on vanilla underlyings, whereas, these days, there are more vanilla payoffs on exotic underlyingseg equity derivatives: realised Variance swaps, realised average pairwise correlation swaps and many basket correlation trades (Himalayans/ Podiums) credit derivs : all types of default swaps, basket nth to default FX : window barriers/faders new thins arise every day