19.1 Exotic Options Chapter 19 Options, Futures, and other Derivatives, 5th edition 2002 by John C. Hull
Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 19.1 Exotic Options Chapter 19
19.2 Types of Exotics Package Binary options Nonstandard American. lookback options options Shout options Forward start options Asian options Compound options Options to exchange Chooser options one asset for another Barrier options Options involving several assets Options, Futures, and other Derivatives, 5th edition 2002 by John C. Hull
Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 19.2 Types of Exotics • Package • Nonstandard American options • Forward start options • Compound options • Chooser options • Barrier options • Binary options • Lookback options • Shout options • Asian options • Options to exchange one asset for another • Options involving several assets
19.3 Packages(page 435) Portfolios of standard options EXamples from Chapter 9: bull spreads bear spreads, straddles, etc Often structured to have zero cost One popular package is a range forward contract Options, Futures, and other Derivatives, 5th edition 2002 by John C. Hull
Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 19.3 Packages (page 435) • Portfolios of standard options • Examples from Chapter 9: bull spreads, bear spreads, straddles, etc • Often structured to have zero cost • One popular package is a range forward contract
194 Non-Standard American Options(page 436) Exercisable only on specific dates (Bermudans) Early exercise allowed during only part of life(e.g. there may be an initial lock out” period) Strike price changes over the life Options, Futures, and other Derivatives, 5th edition 2002 by John C. Hull
Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 19.4 Non-Standard American Options (page 436) • Exercisable only on specific dates (Bermudans) • Early exercise allowed during only part of life (e.g. there may be an initial “lock out” period) • Strike price changes over the life
19.5 Forward start options(page 437) Option starts at a future time, TI Most common in employee stock option plans Often structured so that strike price equals asset price at time T1 Options, Futures, and other Derivatives, 5th edition 2002 by John C. Hull
Options, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 19.5 Forward Start Options (page 437) • Option starts at a future time, T1 • Most common in employee stock option plans • Often structured so that strike price equals asset price at time T1