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.
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 ...
Watch on Youtube
Comments