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What Is an ‘Exotic Option’ and How Does It Differ from American/European?

An exotic option is any option contract with non-standard features, differing from the basic American or European styles. These features can include complex payoff structures, different exercise conditions, or reliance on multiple underlying assets.

Examples include barrier options or Asian options. They are more complex to price and settle, and thus less common in early-stage DeFi protocols.

What Is the Definition of ‘Exotic Options’ in the Context of Financial Derivatives?
How Does the Early Exercise Feature of American Options Affect Their Pricing Relative to European Options?
What Is a ‘Barrier Option’ and How Does It Differ from a Bermuda Option?
What Is the Concept of ‘Early Exercise Premium’ in American Options?