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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

quanto option  

Definition 1.

Option in one currency, but which pays out in another. Quanto options are usually used in cases when investors are confident of the underlying asset's performance, but are not confident of the performance of the currency which the underlying is denominated in.
 

Definition 2.

An option in one country's currency that pays out in another country's currency.
 
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