Other FX Instruments 2
Vanilla options - definition and application
The interpretation of the term vanilla option varies widely and is also not static - for example, options that were considered exotic 10 years ago might now be considered vanilla. In general, vanilla options as a category usually include options with a fixed term and strike price, that are widely traded with good liquidity and that have a linear payoff... more
Exotic options - definition and application
A whole host of more sophisticated options have evolved over the past 40 years that are designed to cater for the needs of particular market participants. A generic term for many of these more unusual option structures is 'exotics'... more
Pricing options and 'The Greeks'
The pricing of FX options is a vast topic that is the focus of much ongoing development. While certain generic methods have become well established in the market place, they are nevertheless the subject of continual refinement... more