Exotic options column panel

Determinants of optionality for pricing exotic options by Carlos Blanco, FEA.

Building block
" Forward
" Swap
" Option
" Strip of options

Long or short?
" Long
" Short

Option type
" Call
" Put
" Straddle

Quantity
" Variable
" Known
" Variable with max OR min
" Variable with max AND min

Strike price
" Fixed
" Average of underlying
" Index at future date

Exercise style
" European
" American
" Bermudan
" Swing (co-dependent)

Underlying
" Spot
" Forward
" Swap
" Spread
" Option
" Combination or multiple

Trigger event / contingency
" Weather
" Plant outage
" Transmission failure
" Other events

Payoff type
" Simple (plain vanilla)
" Digital
" Barrier
" Average
" Lookback