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Derivatives




Quanto Call


A quanto option which gives the holder the right to buy a foreign asset (e.g., a share of stock) and have the proceeds converted into base currency at a predetermined exchange rate. In other words, the strike price of a quanto call is typically set in the base currency, while the value of the foreign asset is converted to base currency at a fixed exchange rate.

Quanto calls are also known as quantoed call options.



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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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