This paper examines options based upon a foreign asset but with a payout that occurs in another currency. Different type of currency translated options are covered: Flexos, Compos or Joint Options and Quantos. A special emphasis is put on this final currency translated option, since it is the...

Principal Component Analysis (PCA) is a common and popular tool for the analysis of financial market data, such as implied volatility smiles, interest rate curves and commodity future curves. We provide a critical view on PCA analysis and the corresponding results from empirical literature. In...

An installment option is a European option in which the premium, instead of being paid up-front, is paid in a series of installments. If all installments are paid the holder receives the exercise value, but the holder has the right to terminate payments on any payment date, in which case the...

Principal Component Analysis (PCA) is a common procedure for the analysis of financial market data, such as implied volatility smiles or interest rate curves. Recently, Pelsser and Lord [11] raised the question whether PCA results may not be 'facts but artefacts'. We extend this line of research...