Exotic derivatives

Exotic derivatives

Exotic derivatives refers to a specific type of financial asset.

*Derivatives are assets whose value depends on another underlying asset.
*Exotic as opposed to vanilla refers to the fact that the payoff is not standard, as is the case for a regular call option.

See also Exotic option

Examples

*CPPI
*Cliquet
*Variance swap


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  • exotic — [ɪg zɒtɪk, ɛg ] adjective 1》 originating in or characteristic of a distant foreign country. 2》 strikingly different or colourful. noun an exotic plant or animal. Derivatives exotically adverb exoticism noun Origin C16: via L. from Gk exōtik …   English new terms dictionary

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