Mountain ranges are those exotic options that are originally marketed by Societe Generale in 1998. By basing the value of the option on several underlying assets, and also by setting a time frame for the option, the options combine the characteristics of basket options and range options.

Further the mountain range options are subdivided into different types, that depends on the specific terms of the options. Examples include the following:

Altiplano

Altiplano is that mountain range option which is a vanilla option that is combined with a compensatory coupon payment if in case the underlying security never reaches its strike price during a given period.

Annapurna

Annapurna is that mountain range option in which if all securities in the basket never fall below a certain price during the relevant time period then the option holder is rewarded.

Atlas

Atlas is that mountain range option in which prior to execution of the option the best and worst-performing securities are removed from the basket.

Everest

Everest is a name given to that mountain range option which is long-term in which the option holder is given a payoff that is based on the worst-performing securities in the basket

Himalayan

Himalayan that mountain range option which is based on the performance of the best asset in the portfolio.

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