A quanto digital option that can only be exercised at its expiration date. It pays the difference between the spot price of the currency pair at maturity (quanto price: the conversion rate from the domestic currency to the quanto currency) and the strike price (for a call in case: spot price > strike price, and for a put when: spot price < strike price).
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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