149:
1271:
1246:
101:
The term "exotic derivative" has no precisely defined meaning, being a colloquialism that reflects how common a particular derivative is in the marketplace. As such, certain derivative instruments have been considered exotic when conceived of and sold, but lost this status when they were traded with
1083:
995:
197:
327:
789:
364:
300:
245:
137:. This latter approach may then be preferred, and also allows for a benchmark against which the more specialized models may be verified.
288:
794:
118:
279:
229:
1129:
90:
which is more complex than commonly traded "vanilla" products. This complexity usually relates to determination of payoff; see
819:
336:
1308:
951:
17:
129:
techniques. Often, it is possible, to "manufacture" the exotic derivative out of standard derivatives. For example, a
687:
205:
1189:
357:
114:
1327:
1124:
769:
122:
1164:
702:
556:
350:
53:
1020:
961:
783:
1065:
876:
1301:
1184:
1179:
1134:
834:
804:
779:
662:
503:
435:
283:
126:
297:
931:
916:
881:
824:
317:
252:
1144:
911:
809:
488:
292:
167:
1332:
1282:
1098:
1055:
1045:
1035:
1030:
756:
697:
632:
586:
581:
455:
415:
382:
321:
172:
87:
68:
48:
8:
1294:
1103:
891:
814:
637:
134:
226:
1154:
1139:
1108:
1093:
1060:
926:
717:
682:
445:
410:
373:
177:
103:
94:. The category may also include derivatives with a non-standard subject matter - i.e.,
63:
43:
1159:
1149:
1088:
1050:
936:
722:
518:
38:
1040:
979:
974:
956:
886:
652:
647:
619:
571:
450:
390:
58:
1250:
1220:
1215:
1169:
1005:
1000:
946:
856:
764:
737:
677:
672:
642:
591:
576:
493:
473:
331:
304:
233:
1278:
1225:
1210:
1010:
921:
871:
848:
829:
657:
599:
566:
561:
541:
465:
312:
130:
1321:
1205:
1174:
1015:
941:
901:
896:
732:
604:
551:
546:
528:
425:
405:
162:
107:
1025:
799:
727:
707:
667:
536:
508:
498:
440:
308:
154:
91:
906:
774:
745:
741:
692:
483:
478:
1230:
866:
861:
627:
513:
95:
420:
342:
990:
712:
609:
430:
83:
1270:
1245:
102:
significant enough volume. Examples of this phenomenon include
27:
Derivative which is more complex than commonly traded products
98:- developed for a particular client or a particular market.
117:, given their complexity, exotic derivatives are usually
280:
Understanding derivative contracts: types of derivatives
227:
Understanding derivative contracts: types of derivatives
144:
133:can be "manufactured" out of standard options; see
337:A Day in the Life of an Exotic Derivatives Trader
1319:
1302:
358:
220:
1277:This money or currency-related article is a
1309:
1295:
365:
351:
289:Exotic Derivatives and Structured Products
1190:Power reverse dual-currency note (PRDC)
1130:Constant proportion portfolio insurance
14:
1320:
372:
346:
1265:
1125:Collateralized debt obligation (CDO)
24:
328:Guide to Exotic Credit Derivatives
25:
1344:
273:
1269:
1244:
318:Exotic Equity Derivatives Manual
147:
135:Barrier option § Valuation
952:Year-on-year inflation-indexed
238:
190:
13:
1:
962:Zero-coupon inflation-indexed
183:
1281:. You can help Knowledge by
7:
1165:Foreign exchange derivative
557:Callable bull/bear contract
140:
54:Exotic interest rate option
31:Types of exotic derivative
10:
1349:
1264:
1239:
1198:
1117:
1074:
1066:Stock market index future
970:
847:
755:
618:
527:
464:
398:
389:
380:
232:January 15, 2012, at the
1185:Mortgage-backed security
1180:Interest rate derivative
1155:Equity-linked note (ELN)
1140:Credit-linked note (CLN)
284:HM Revenue & Customs
1135:Contract for difference
436:Risk-free interest rate
917:Forward Rate Agreement
198:"GARP - Risk Glossary"
1328:Derivatives (finance)
1145:Credit default option
489:Employee stock option
293:University of Chicago
168:Financial engineering
1099:Inflation derivative
1084:Commodity derivative
1056:Single-stock futures
1046:Normal backwardation
1036:Interest rate future
877:Conditional variance
383:Derivative (finance)
322:Salomon Smith Barney
173:Financial innovation
69:Property derivatives
49:Inflation derivative
1251:Business portal
1104:Property derivative
291:, SĂ©bastien Bossu,
32:
1109:Weather derivative
1094:Freight derivative
1076:Exotic derivatives
996:Commodities future
683:Intermarket spread
446:Synthetic position
374:Derivatives market
303:2012-12-26 at the
298:Exotic Derivatives
178:Structured product
121:using specialized
64:Weather derivative
44:Freight derivative
30:
18:Exotic derivatives
1290:
1289:
1259:
1258:
1160:Equity derivative
1150:Credit derivative
1118:Other derivatives
1089:Energy derivative
1051:Perpetual futures
932:Overnight indexed
882:Constant maturity
843:
842:
790:Finite difference
723:Protective option
80:exotic derivative
76:
75:
39:Energy derivative
16:(Redirected from
1340:
1311:
1304:
1297:
1273:
1266:
1249:
1248:
1021:Forwards pricing
795:Garman–Kohlhagen
396:
395:
367:
360:
353:
344:
343:
267:
266:
264:
263:
257:
251:. Archived from
250:
246:"Emanuel Derman"
242:
236:
224:
218:
217:
215:
213:
208:on 14 April 2013
204:. Archived from
194:
157:
152:
151:
150:
59:Macro derivative
33:
29:
21:
1348:
1347:
1343:
1342:
1341:
1339:
1338:
1337:
1318:
1317:
1316:
1315:
1262:
1260:
1255:
1243:
1235:
1221:Great Recession
1216:Government debt
1194:
1170:Fund derivative
1113:
1070:
1031:Futures pricing
1006:Dividend future
1001:Currency future
984:
966:
839:
815:Put–call parity
751:
738:Vertical spread
673:Diagonal spread
643:Calendar spread
614:
523:
460:
385:
376:
371:
332:Lehman Brothers
305:Wayback Machine
276:
271:
270:
261:
259:
255:
248:
244:
243:
239:
234:Wayback Machine
225:
221:
211:
209:
196:
195:
191:
186:
153:
148:
146:
143:
28:
23:
22:
15:
12:
11:
5:
1346:
1336:
1335:
1330:
1314:
1313:
1306:
1299:
1291:
1288:
1287:
1274:
1257:
1256:
1254:
1253:
1240:
1237:
1236:
1234:
1233:
1228:
1226:Municipal debt
1223:
1218:
1213:
1211:Corporate debt
1208:
1202:
1200:
1196:
1195:
1193:
1192:
1187:
1182:
1177:
1172:
1167:
1162:
1157:
1152:
1147:
1142:
1137:
1132:
1127:
1121:
1119:
1115:
1114:
1112:
1111:
1106:
1101:
1096:
1091:
1086:
1080:
1078:
1072:
1071:
1069:
1068:
1063:
1058:
1053:
1048:
1043:
1038:
1033:
1028:
1023:
1018:
1013:
1011:Forward market
1008:
1003:
998:
993:
987:
985:
983:
982:
977:
971:
968:
967:
965:
964:
959:
954:
949:
944:
939:
934:
929:
924:
919:
914:
909:
904:
899:
894:
892:Credit default
889:
884:
879:
874:
869:
864:
859:
853:
851:
845:
844:
841:
840:
838:
837:
832:
827:
822:
817:
812:
807:
802:
797:
792:
787:
777:
772:
767:
761:
759:
753:
752:
750:
749:
735:
730:
725:
720:
715:
710:
705:
700:
695:
690:
688:Iron butterfly
685:
680:
675:
670:
665:
660:
658:Covered option
655:
650:
645:
640:
635:
630:
624:
622:
616:
615:
613:
612:
607:
602:
597:
596:Mountain range
594:
589:
584:
579:
574:
569:
564:
559:
554:
549:
544:
539:
533:
531:
525:
524:
522:
521:
516:
511:
506:
501:
496:
491:
486:
481:
476:
470:
468:
462:
461:
459:
458:
453:
448:
443:
438:
433:
428:
423:
418:
413:
408:
402:
400:
393:
387:
386:
381:
378:
377:
370:
369:
362:
355:
347:
341:
340:
339:, quantnet.com
334:
325:
315:
313:Baruch College
295:
286:
275:
274:External links
272:
269:
268:
237:
219:
188:
187:
185:
182:
181:
180:
175:
170:
165:
159:
158:
142:
139:
108:currency-swaps
104:interest rate-
74:
73:
72:
71:
66:
61:
56:
51:
46:
41:
26:
9:
6:
4:
3:
2:
1345:
1334:
1331:
1329:
1326:
1325:
1323:
1312:
1307:
1305:
1300:
1298:
1293:
1292:
1286:
1284:
1280:
1275:
1272:
1268:
1267:
1263:
1252:
1247:
1242:
1241:
1238:
1232:
1229:
1227:
1224:
1222:
1219:
1217:
1214:
1212:
1209:
1207:
1206:Consumer debt
1204:
1203:
1201:
1199:Market issues
1197:
1191:
1188:
1186:
1183:
1181:
1178:
1176:
1175:Fund of funds
1173:
1171:
1168:
1166:
1163:
1161:
1158:
1156:
1153:
1151:
1148:
1146:
1143:
1141:
1138:
1136:
1133:
1131:
1128:
1126:
1123:
1122:
1120:
1116:
1110:
1107:
1105:
1102:
1100:
1097:
1095:
1092:
1090:
1087:
1085:
1082:
1081:
1079:
1077:
1073:
1067:
1064:
1062:
1059:
1057:
1054:
1052:
1049:
1047:
1044:
1042:
1039:
1037:
1034:
1032:
1029:
1027:
1024:
1022:
1019:
1017:
1016:Forward price
1014:
1012:
1009:
1007:
1004:
1002:
999:
997:
994:
992:
989:
988:
986:
981:
978:
976:
973:
972:
969:
963:
960:
958:
955:
953:
950:
948:
945:
943:
940:
938:
935:
933:
930:
928:
927:Interest rate
925:
923:
920:
918:
915:
913:
910:
908:
905:
903:
900:
898:
895:
893:
890:
888:
885:
883:
880:
878:
875:
873:
870:
868:
865:
863:
860:
858:
855:
854:
852:
850:
846:
836:
833:
831:
828:
826:
823:
821:
820:MC Simulation
818:
816:
813:
811:
808:
806:
803:
801:
798:
796:
793:
791:
788:
785:
781:
780:Black–Scholes
778:
776:
773:
771:
768:
766:
763:
762:
760:
758:
754:
747:
743:
739:
736:
734:
733:Risk reversal
731:
729:
726:
724:
721:
719:
716:
714:
711:
709:
706:
704:
701:
699:
696:
694:
691:
689:
686:
684:
681:
679:
676:
674:
671:
669:
666:
664:
663:Credit spread
661:
659:
656:
654:
651:
649:
646:
644:
641:
639:
636:
634:
631:
629:
626:
625:
623:
621:
617:
611:
608:
606:
603:
601:
598:
595:
593:
590:
588:
587:Interest rate
585:
583:
582:Forward start
580:
578:
575:
573:
570:
568:
565:
563:
560:
558:
555:
553:
550:
548:
545:
543:
540:
538:
535:
534:
532:
530:
526:
520:
517:
515:
512:
510:
509:Option styles
507:
505:
502:
500:
497:
495:
492:
490:
487:
485:
482:
480:
477:
475:
472:
471:
469:
467:
463:
457:
454:
452:
449:
447:
444:
442:
439:
437:
434:
432:
429:
427:
426:Open interest
424:
422:
419:
417:
414:
412:
409:
407:
406:Delta neutral
404:
403:
401:
397:
394:
392:
388:
384:
379:
375:
368:
363:
361:
356:
354:
349:
348:
345:
338:
335:
333:
329:
326:
323:
319:
316:
314:
310:
306:
302:
299:
296:
294:
290:
287:
285:
281:
278:
277:
258:on 2012-03-12
254:
247:
241:
235:
231:
228:
223:
207:
203:
199:
193:
189:
179:
176:
174:
171:
169:
166:
164:
163:Exotic option
161:
160:
156:
145:
138:
136:
132:
131:knockout call
128:
127:lattice-based
124:
120:
116:
111:
109:
105:
99:
97:
93:
89:
85:
81:
70:
67:
65:
62:
60:
57:
55:
52:
50:
47:
45:
42:
40:
37:
36:
35:
34:
19:
1283:expanding it
1276:
1261:
1075:
1026:Forward rate
937:Total return
825:Real options
728:Ratio spread
708:Naked option
668:Debit spread
499:Fixed income
441:Strike price
309:Jim Gatheral
260:. Retrieved
253:the original
240:
222:
210:. Retrieved
206:the original
202:www.garp.org
201:
192:
155:Money portal
112:
100:
92:option style
79:
77:
1333:Money stubs
957:Zero Coupon
887:Correlation
835:Vanna–Volga
693:Iron condor
479:Bond option
123:simulation-
113:As regards
1322:Categories
1231:Tax policy
947:Volatility
857:Amortising
698:Jelly roll
633:Box spread
628:Backspread
620:Strategies
456:Volatility
451:the Greeks
416:Expiration
262:2012-03-15
212:27 January
184:References
96:underlying
88:derivative
922:Inflation
872:Commodity
830:Trinomial
765:Bachelier
757:Valuation
638:Butterfly
572:Commodore
421:Moneyness
115:valuation
1061:Slippage
991:Contango
975:Forwards
942:Variance
902:Dividend
897:Currency
810:Margrabe
805:Lattices
784:equation
770:Binomial
718:Strangle
713:Straddle
610:Swaption
592:Lookback
577:Compound
519:Warrants
494:European
474:American
466:Vanillas
431:Pin risk
411:Exercise
307:, Prof.
301:Archived
230:Archived
141:See also
119:modelled
980:Futures
600:Rainbow
567:Cliquet
562:Chooser
542:Barrier
529:Exotics
391:Options
86:, is a
84:finance
1041:Margin
907:Equity
800:Heston
703:Ladder
653:Condor
648:Collar
605:Spread
552:Binary
547:Basket
324:(1998)
912:Forex
867:Basis
862:Asset
849:Swaps
775:Black
678:Fence
537:Asian
399:Terms
256:(PDF)
249:(PDF)
82:, in
1279:stub
746:Bull
742:Bear
484:Call
214:2022
106:and
514:Put
125:or
78:An
1324::
744:,
504:FX
330:,
320:,
311:,
282:,
200:.
110:.
1310:e
1303:t
1296:v
1285:.
786:)
782:(
748:)
740:(
366:e
359:t
352:v
265:.
216:.
20:)
Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.