CDS and Exotic Options

Ever heard of exotic options, like barrier, knock-out, and knock-in options. Lets try to distinguish them.

In finance, a barrier option is an exotic derivative typically an option on the underlying asset whose price breaching the pre-set barrier level either springs the option into existence or extinguishes an already existing option.

Where the option springs into existence on the price of the underlying Continue reading “CDS and Exotic Options”