Domestic Payoff: Supershare 2 Formula: Hd = Sd * (heavy (Sd - Xd1) – heavy (Sd - Xd2)) Xd1 = 0.8; Xd2 = 2.1

Foreign Payoff: Supershare 1

On the previous page we saw that a Supershare 1 type of exotic option had a financially equivalent payoff in the shape of a Supershare 2 type of option. So it comes as no surprise that a Supershare 2 type of option has a foreign financially equivalent payoff in the shape of a Supershare 1 option.