Editing Option style (section)

===Quanto option===
* A '''[[quanto]]''' '''option''' is a cross option in which the exchange rate is fixed at the outset of the trade, typically at 1. These options are often used by traders to gain exposure to foreign markets without exposure to exchange rate. Continuing the example from the composite option, the payoff of an IBM quanto call option would then be <math>\max((S-K),0) FX_0 \cdot \text{JPY}</math>, where <math>FX_0</math> is the exchange rate fixed at the outset of the trade. This would be useful for traders in Japan who wish to be exposed to IBM stock price without exposure to JPY/USD exchange rate.