Imported from previous forum
Hi,
Has anybody heard of warrants or options with two strike prices.This could be some exotic type of option.Could anyone explain how this particular type of option would work?
[ original email was from Koorosh Alahiari - alahiari.koorosh@msdw.com ]
Path dependent options come to mind.
Take Variable Strike Options for example. Please?
Some verities have strikes that change with time,
say 100 for first 3 months, 102 for the next three & so on.
Yet in another type the strike is determined by performance of some unrelated instrument.
Too many to enumerate. Not sure if this is the right forum!
regards
Koorosh Alahiari - 7c Information Systems
koorosh@7cis.com
> Hi,
>
> Has anybody heard of warrants or options with two strike prices.This could be some exotic type of option.Could anyone explain how this particular type of option would work?
>
>
>
>
[ original email was from Witold Sames - witold@javtech.com ]
> Hi,
>
> Has anybody heard of warrants or options with two strike prices.This could be some exotic type of option.Could anyone explain how this particular type of option would work?
>
There are a lot of good resources available that describe exotic options and warrants. Your best bet are the big issuers in Europe, actually. Look at the following websites, for starters:
http://warrants.citibank.com (Citi)
http://warrants.gs.com (Goldman)
http://www.warrants.com (Societe Generale)
Erik Banks is the author of a really good book "Complex Derivatives: Understanding and Managing the Risks of Exotic Options, Complex Swaps, Warrants and Other Synthetic Derivatives"; it was published in 1993, but is still a great source of knowledge.
Lastly, I had once written an article on and about exotic warrants, which I can send you by email if you are interested.