Exotic Options: Currency Translated Options

Osterreichisches Bank-Archiv, Forthcoming

Posted: 17 Sep 2004

See all articles by Jose Carlos Wong

Jose Carlos Wong

Goethe University Frankfurt

Robert Tompkins

Business School of Finance & Management (HfB) - Bankakademie Group

Abstract

This paper examines options based upon a foreign asset but with a payout that occurs in another currency. Different type of currency translated options are covered: Flexos, Compos or Joint Options and Quantos. A special emphasis is put on this final currency translated option, since it is the only product that completely eliminates the currency risk to the equity investor.

Keywords: Exotic options, Flexos, Compos, Quantos

JEL Classification: G13

Suggested Citation

Wong, Jose Carlos and Tompkins, Robert George, Exotic Options: Currency Translated Options. Osterreichisches Bank-Archiv, Forthcoming, Available at SSRN: https://ssrn.com/abstract=591169

Jose Carlos Wong

Goethe University Frankfurt ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

Robert George Tompkins (Contact Author)

Business School of Finance & Management (HfB) - Bankakademie Group ( email )

Frankfurt
Germany
(069) 154008-718 (Phone)

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