Asset 1: Basket Call on Asset 2 and Asset 3 Formula: H1 = max(a*s12 + b*s13 - X, 0)

Asset 2: unidentified

Asset 3: unidentified

Here is the first example of a truly multi-asset option — a Basket Call option. A basket Option can involve any number of assets, not just three. The financially equivalent payoffs look very similar; they are just "rotated" a bit. It does not matter how simple or complex the financially equivalent payoffs are, PAT always identifies them instantly.