• exotic options
• options
• pricing models

Financial options are an instrument of particular interest in the world of financial markets.
Understanding the pricing mechanisms of these instruments is critical to their proper application.
Indeed, this thesis aims to explore these models.
It is developed with a first part dedicated to the basics regarding plain vanilla options and the illustration of the main pricing models: binomial model (CRR), the Black-Scholes-Merton model with reference also to stochastic processes and finally the Monte Carlo simulation.
The second part also analyzes a family of exotic options called "path dependence," which are characterized by more complex structures than the common plain vanilla ones.
Finally, numerical exemplifications are made with respect to both plain vanilla and path dependence options.