An Exotic Option Is

question 1

Multiple Choice

An exotic option is

• A) Any option written on an unusual or rare underlying asset.
• B) An option that is traded only by boutique organizations.
• C) Any option that is not a plain vanilla put or call.
• D) Any option with very complex payoff patterns.

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Definitions:

Independent Contractors

Individuals or companies contracted to perform tasks or services for another entity under terms specified in a contract, not classified as employees.

Employees

Individuals who are hired to perform services for a company or another person in exchange for compensation, typically operating under a contract of employment.

Disclosed Principals

The concept in agency law where an agent's third party is aware of the identity of the principal, thus establishing contractual or legal relationships.

Scope of Employment

Refers to the range of activities and duties that an employee is expected to perform as part of their job.