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October 9, 2021
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Quanto Forward

October 9, 2021

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An exotic option that combines the features of a quanto option and an equity option. The payoff of a quanto equity option essentially depends on FX/equity correlation. At maturity (for European-style options), the holder receives the amount by which the market price of a foreign stock exceeds (for a call) or is below (for a put) the strike price denominated in foreign currency.

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