A category of exotics that have additional features compared to 1st generation exotics (exotic products), vanilla options, or forwards. Examples of 2nd generation exotics include window barrier options (whose first-generation origin is American barrier options). Target redemption forward, accrual option, and Asian option are 2nd generation types of standard forward contracts and vanilla options.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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