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Pricing and Hedging of Exotic Options

  • Jia-An Yan
Chapter
Part of the Universitext book series (UTX)

Abstract

Usually we call an option whose payoff at the exercise or expiry time depends only on the current price of the underlying asset (such as European option, American option, compound option, etc., studied in Chap.  5) a vanilla option (here “vanilla” stands for “ordinary”). Any option that is not vanilla is called an exotic option. Exotic options are widely used in investment and risk management by banks, corporations, and institutional investors.

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Copyright information

© Springer Nature Singapore Pte Ltd. and Science Press 2018

Authors and Affiliations

  • Jia-An Yan
    • 1
  1. 1.Academy of Mathematics and System ScienceChineses Academy of SciencesBeijingChina

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