# Composite Option

*Derivatives & Options — Finicade finance glossary*

An option on a foreign asset whose strike and payoff are converted at the live exchange rate — you're exposed to both the asset and the currency. The plain-FX cousin of the quanto, which fixes the rate instead.

**Related terms:** [Quanto Option](https://finicade.com/glossary/quanto-option), [Exchange Rate](https://finicade.com/glossary/exchange-rate), [Exotic Option](https://finicade.com/glossary/exotic-options)

**Taught in:** Quant Quest — Foreign Exchange Modelling

Source: https://finicade.com/glossary/composite-option