Need info on latest exotic options
Posted: March 8th, 2005, 4:19 am
by hamb
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
Need info on latest exotic options
Posted: March 10th, 2005, 1:24 pm
by doublebarrier2000
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