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  1. Nicole Seaman

    YouTube T3-43 - Exotic options: chooser option

    The chooser (aka, as you like it) option has one strike price (K = $40.00 in my example) but two key dates (T1 and T2). On the first date (T1), the holder "chooses" it to be either a call or a put. At that point, it becomes a standard call/put with a remaining life of Δt = T2 - T1. In the second...
  2. Nicole Seaman

    P1.T3.730. Chooser and barrier (exotic) options (Chapter 26 cont.)

    Learning objectives: Identify and describe the characteristics and pay-off structure of the following exotic options: gap, forward start, compound, chooser, barrier, binary, lookback, shout, Asian, exchange, rainbow, and basket Questions: 730.1 A non-dividend paying stock is currently...