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ResolutionExotics provides valuation and risk management of a wide range of
exotic options written on equity, currencies, and interest rates.
Exotic Option Types
- Asian options
- Single barrier and double barrier options
- Digital (binary) options
- Digital barrier options
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Chooser options
- Lookback options
- Extendible options
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Options on multiple assets
- Spread options
The Exotic Options component is designed to deal with a range of "exotic"
option contracts. The supported functions can be usefully
split into ten main categories:
Asian Options: An Asian option has its payoff linked to the
average price of an asset over a period of time. As a result, Asian options have
a lower volatility than standard options and therefore cost less.
Barrier Option Functions: Barrier options are path-dependent options
that are either initiated (knocked-in) or eliminated (knocked-out) upon reaching
a certain barrier level.
Binary Options: Binary options, sometimes referred to as digital
or bet options, are options that pay out either a fixed amount (if they expire
in the money), or nothing (if they expire out of the money).
Chooser Options: Chooser Options are options that allow the
holder to choose whether the option is a call or a put at some future date.
Exchange Options: Exchange options allow the holder to exchange
one asset for another.
Extendible Options: Extendible options are options that can
be extended by either the holder or writer of the option.
Foreign Equity Options: Foreign Equity options are options
in which the underlying asset is a foreign equity.
Lookback Options: Lookback options are a type of path-dependent
option. A Lookback Call (Put) allows the holder to buy (sell) the underlying
asset at the lowest (highest) price reached during the term of the option.
MinMax Options: MinMax options are options on the maximum
or minimum of an asset.
Spread Options: Spread options have a payoff determined by
the difference between the prices of two assets and a fixed strike price.
For more information see our pricing plans.
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