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Quanto Basket Digital Option


A hybrid of digital option (binary option) and quanto basket option. This option combines the quanto basket features of the latter option with the “either-or” profile of the digital option. A basket digital with an either/ or payout profile will be attractive to an investor who has a view only on whether or not a price level is breached, rather than on how far prices would rise above the strike level.



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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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