Today I will talk about Exotic Options. Think of vanilla options as your basic coffee order: a flat white or cappuccino. Exotic options are like customizing that coffee order with your preferred milk type or amount of sugars. It’s still coffee, but tailored exactly to your taste.
Fixed Coupon Notes
Pure Options
Returen:
Higher yields, securing returns solely from options premiums with strong downside protection.
Risk:
Incur losses if asset prices fall past barriers.
Bond + Options
Return:
Earn enhanced yields, blending stability and performance for the conservative investor.
Risk:
Lend capital to market maker.
Incur losses if asset prices fall past barriers.
Dual Currency
Return:
Maximise yield on your alternative assets while seizing the opportunity to acquire at a discount or sell for a profit.
Risk:
The deposit currency may be converted at a rate that is less optimal than the market rate, diluting potential upside.
Shark Fin
Return:
Enjoy 100% principal protection and guaranteed returns with a high bonus yield.
Risk:
Lend capital to market maker.