Domestic Payoff: Domestic payoff is based on the following function: Formula: Hd = Sd^T / (exp(Sd) - 1) T = 1.2 to 2

Foreign Payoff: Foreign payoff, as produced by PAT, differs from the domestic counterpart.

This example, although not representing the payoff of any known exotic option, is included to illustrate that when the original payoff is complex, the financially equivalent foreign counterpart can not be intuitively derived from the original payoff as easily as is the case with Put-Call pairing. Portfolios composed of a multitude of various exotic payoffs can look very complicated, much more complicated than the case displayed here. With the help of PAT, finding a financially equivalent foreign payoff is a simple straightforward procedure. However, attempting the same with other means is virtually impossible.