# Quanto Option

*Derivatives & Options — Finicade finance glossary*

An option on a foreign asset that pays out in your home currency at a fixed exchange rate — so you get the asset's move without the currency risk. The 'quanto' adjustment prices the correlation between asset and FX.

**Also known as:** quanto

**Related terms:** [Composite Option](https://finicade.com/glossary/composite-option), [Exchange Rate](https://finicade.com/glossary/exchange-rate), [Correlation](https://finicade.com/glossary/correlation)

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

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