Egzotiniai pasirinkimo sandoriai

Abstract

Increasing investment risk and uncertainty of financial markets are the main reasons why investors are looking for new investment possibilities, better satisfying their increasing needs and changing situation in the market. Exotic options are options with rules governing the payoff that are more complicated than standard options. Most exotic options trade in the over-the-counter market and have been designed to meet particular needs of corporations. There are many variations of exotic options. The article presents the analysis of classification of exotic options, their usage possibilities and differences between them and plain vanilla options. The main types of exotic options are average options, barrier options, Bermuda options and other types. For example, barrier option is an option that has an embedded price level, which if reached will either create a vanilla option or eliminate the existence of a vanilla option. The reason a buyer purchases a barrier option is for the decreased cost and therefore increased leverage. The optionpricing model developed by Fischer Black and Myron Scholes forms the basis for calculating the premium for regular and many forms of exotic options. Besides, the binomial pricing method provides useful means for exotic options pricing.