Questions tagged [exotic-options]

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One-touch call option under Black-Scholes model

I know that a european call option can be valuated using the Black-Scholes formula, that is; $C_t(K)=BS(S_0,t,T,K,r)$, so if I have a one-touch call option given as \begin{equation} OTC_T(K)=(S_T-K)^+\...
Don P.'s user avatar
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Would a call option with one strike price be worth more than a call option with two different strike prices?

For example, say there is a call option with a strike price of $50 for a stock. Now, say there is another call option for the same stock with a strike price of $50 if the stock price is below $60, but ...
Jonathan's user avatar
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What is the purpose of a strike price in a barrier option?

Is there any real purpose to it? A barrier option is only triggered by reaching the barrier price anyways.
Sean Taylor's user avatar
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Do compound options trade on exchanges or do they only trade over-the-counter?

Do options on options (i.e. compound options) trade on derivatives exchanges? Or are they only traded over-the-counter? If they do trade on exchanges, which exchanges do they trade on?
Flux's user avatar
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What are Binary Options?

What are binary options, what can they be traded on and what is the process in trading them? Also, are there any brokers in Australia who offer binary options?
Victor's user avatar
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