Exotic options
A) Can always be hedged just as easily as regular options
B) Are easier to hedge than regular options
C) Are more difficult to hedge than regular options
D) Are sometimes easier and sometimes more difficult to hedge than regular options.

Question

Quizplus · Accepted Answer

Average price options are usually easier to hedge than regular options because as time passes there is progressively less uncertainty about what the final average will be.Barrier options are more difficult to hedge because of discontinuities.

Exotic Options