The article's aim is to present financial characteristics of instruments included in four classes of exotic options, i.e. singular, elastic, compound and nonlinear options.

Singular payoff options are characterized by nonlinearity or sudden fluctuations in the function of income, presented in graphs as steps. Within singular options we can distinguish three major groups of exotic options: contingent premium options, binear options, and gap options.

Options included in this class are sometimes referred to as time-dependent options. Their exercise time is determined differently than in case of European or American options; also other characteristics of the option are often determined in a different time than in case of standard options. Elastic options provide a buyer with a right to choose certain features in the future, i.e. after conclusion of the option contract. There are the following main groups of elastic options: Bermudan options, chooser options, forward start options, ratchet options, and shout options.

compound option is the option where another option, called daughter option, is the underlying instrument. The option based on another option, called parent option, gives the buyer a right to buy or sell - in agreed time - a strictly specified option at a previously agreed price.

Nonlinear payoff options refer to options with nonlinear function of the final value, i.e. options where the relation between income and price of the underlying instrument is nonlinear at the moment of termination, or, as some admit, the graphic representation of the relation has the shape of a hockey stick, which is in turn typical for standard options. The nonlinearity may be presented in several ways, for example, as an exponential or logarithmic function, or another nonlinear function of the underlying instrument's price.