The Option Menagerie

Our focus in the past two chapters has been on plain-vanilla puts and calls or combina­tions of them. An understanding of these options and how they are valued will allow you to handle most of the option problems that you are likely to encounter in corporate finance. However, you may occasionally encounter some more unusual options. We are not going to be looking at them in this book, but just for fun and to help you hold your own in conver­sations with your investment banker friends, here is a crib sheet that summarizes a few of these exotic options:

Source:  Brealey Richard A., Myers Stewart C., Allen Franklin (2020), Principles of Corporate Finance, McGraw-Hill Education; 13th edition.