Exotics modeling refers to the process of valuing and analyzing exotic options, which are complex financial derivatives with features that differ from standard (vanilla) options. These options often have unique payoff structures, expiration terms, or underlying assets, making their modeling more intricate. There are numerous type of of Exotic Options such as multiple barrier types and one with various averaging types for managing settlement risk. Barrier Options: Options that become active or inactive if the underlying asset's price reaches a predetermined level. Asian Options: Options where the payoff depends on the average price of the underlying asset over a specific period, rather than its price at maturity. Lookback Options: Options allowing the holder to "look back" over time to determine the payoff based on the optimal underlying asset price during the option's life. Binary Options: Options that offer a fixed payoff if a certain condition is met, such as the underlying asset reaching a specific price level.