Search
Generic filters
Filter by Categories
Accounting
Banking

Derivatives




Quadratic Option


A quanto option in which the terminal payoff is denominated in a foreign currency, instead of the domestic one (the currency of the payoff differs from that of the notional). The payoff is directly converted into foreign currency units at expiration date. The price of such an option is usually expressed as a percentage of the base currency amount.

This option is also known as a self-quanto option or a auto-quanto option.



ABC
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
Watch on Youtube
Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments


    Leave Your Comment

    Your email address will not be published.*