Asian option An option whose
expiration value depends on
the average value of an underlier over a specified period.
barrier option A path-dependent option
that terminates or is activated by the underlier reaching some
option A type of option which features a
discontinuous expiration value.
instrument An instrument
which derives its value from the value of other financial
instruments. Article includes a list of vanilla and exotic derivatives.
A trade that is agreed to at one point in time but will
take place at some later time.
A path dependent option whose
payout depends upon the maximum or minimum underlier value
achieved during the entire life of the option.
option pricing theory The
body of financial theory used by financial engineers to value options and other
dependence A property of certain exotic options whose terminal value depends
upon the path taken by the underlier during the life of the option.