Derivatives with well-defined properties such as European and American call or put options are known as plain vanilla products. As a financial instrument plain vanilla option gives the right (not the obligation) to buy or sell an underlying asset at a preset price in the future. In general, it is traded on an exchange as the Chicago Board Options Exchange. It is one of the simplest financial products that can be adapted to specific financial instruments such as bonds and options or even used for various trading strategies. Prices or implied volatilities are always set by brokers or exchanges. As a financial product it is the opposite of the exotic instrument, which replace alternative investment management products with more complex components. Contrary to standard options, exotic options become active only then the underlying option reaches a predetermined point of the price. Such exotics are often used to construct a portfolio. Though, they have only a small part of portfolio, but these exotics have an important role due to their profitability. There are number of reasons why exotic products are developed. Sometimes they meet certain hedging need in the financial market. Sometimes portfolio managers find exotic options attractive due to tax, accounting, or legal reasons. Occasionally, such products are designed to mirror possible movements in the future in certain market variables. Mostly, such an alternative investment management products are used by derivatives dealers and is less attractive to an unwary corporate treasurers or fund managers. Another type of plain vanilla products is plain vanilla swaps. We know that swap is an agreement between two parties to interchange continuance of cash flows for a foreordain period of time by using certain terms such as an interest rate payment. A plain vanilla swap can include commodity foreign currency or interest rate swaps, where the last one is the agreement between two parties to exchange interest rates on certain cash flows. After 2007, such an alternative investment management strategy is sometimes known as “vanilla strategy” due to risky mortgages used in the housing market. Many politicians, economics and scientists have been pushing to make the financial system safer by letting lenders to offer standardized, low-risk mortgages to customers.