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    Derivatives Study Set 1
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    Exam 18: Path-Independent Exotic Options
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    An Exotic Option Is
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An Exotic Option Is

Question 1

Question 1

Multiple Choice

An exotic option is


A) Any option written on an unusual or rare underlying asset.
B) An option that is traded only by boutique organizations.
C) Any option that is not a plain vanilla put or call.
D) Any option with very complex payoff patterns.

Correct Answer:

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