How Does the ‘Greeks’ Calculation Become More Complex for Exotic Options?

The 'Greeks' (Delta, Gamma, Theta, Vega, Rho) measure the sensitivity of an option's price to various market factors. For exotic options, such as barrier or Asian options, the complex payoff structures introduce discontinuities or path dependencies, making the analytical formulas used for vanilla options invalid.

This necessitates the use of more sophisticated numerical methods, like Monte Carlo simulations, which significantly increases the complexity and computational cost of the calculations.