1. A financial derivative option with more complex features and conditions than standard vanilla options, including non-standard payoff structures, exercise conditions, or underlying assets
The trader invested in an exotic option with a barrier clause that would be triggered if the stock price reached a certain level.
O operador investiu em uma opção exótica com uma cláusula de barreira que seria acionada se o preço da ação atingisse um certo nível.
2. Any option contract that differs from standard call or put options, such as Asian options, lookback options, or rainbow options
Exotic options are often used by institutional investors to hedge complex portfolio risks.
As opções exóticas são frequentemente usadas por investidores institucionais para proteger riscos complexos de portfólio.