Quanto Option
An option in one country's currency that pays out in another country's currency.
Investopedia Commentary
This is usually used when an investor believes that a stock will do well in another country, but fears that the country's currency will not. The investor buys an option in the foreign stock while keeping the payout in his or her home currency.
Related Links
Options Basics Tutorial
See also: Equity-Linked Foreign Exchange Option - ELF-X, FOREX, Option