# Exchange Option

*Derivatives & Options — Finicade finance glossary*

The right to swap one asset for another — say, give up stock A to receive stock B. Margrabe's formula prices it, and it turns out many payoffs (like options to exchange cash for stock) are exchange options in disguise.

**Also known as:** margrabe option

**Related terms:** [Option](https://finicade.com/glossary/option), [Basket Option](https://finicade.com/glossary/basket-option), [Correlation](https://finicade.com/glossary/correlation)

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