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Exotics

These are option contracts that do not have standard features like European or American options. Their complex structures have been customized to meet the specific trading strategies and risk/ reward needs of their customers. These third generation solution are not exchange traded but instead are sold over the counter (OTC). They include: Chooser options, Basket options, Barrier options, Look backs, binaries or digital options, etc.

Free Courses

  • Advanced Derivatives Crash Course – Structured products, credit derivatives, exotics
  • Computational Finance: Building Monte Carlo (MC) Simulators in Excel
  • Derivative Pricing, Risk Management, Financial Engineering – Equation Reference
  • Derivative Products
  • Derivatives Crash Course for Dummies
  • Interest Rate Options – Pricing Caps and Floors
  • Options pricing with Binomial trees in Excel spreadsheets
  • Pricing Interest Rate Swaps – The valuation and MTM course

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Recent Posts

  • Monte Carlo Simulation: Convergence and Variance reduction techniques for option pricing models
  • Options Pricing Training: Interest Rate Options: Pricing Caps and Floors
  • Forwards and Swaps: Interest Rates Models: Bootstrapping the Zero curve and Implied Forward curve
  • Options, Forwards, Futures: Pricing Interest Rate Swaps

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Option Pricing using Monte Carlo Simulation

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