Option in one currency, but which pays out in another. Quanto options are usually...
Option on a foreign stock with payout in another (e.g. domestic) currency. The foreign interest rate determines the size of the futures cash flows that are denominated in domestic currency. If foreign interest rate and the exchange rate are positively correlated, a rise in foreign interest rate will cause an appreciation in domestic currency, and therefore the value of the total cash flows will increase for investor. In conclusion, a Quanto option allows investors to take advantage of interest-rate differentials without directly incurring exchange-rate risk.
An option in which the payoff is the greater of zero or the value of a Quanto Forward contract. In other words, it is a European fixed exchange rate foreign equity option.
a cross option in which the exchange rate is fixed at the outset of the trade
an Option on some underlying in one currency but paid in another currency
This is the name given to a type of option that is denominated in a currency other than the natural currency of the underlying. In particular, the payout of a quanto option does not depend on the movement of the exchange rate between the two currencies.
An option in one country's currency that pays out in another country's currency.
An option in one currency or interest rate that pays out in another currency or interest rate. Used when an investor favors a foreign index, but is bearish on the outlook for that country's currency.