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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