Asian option

Asian option

Option based on the average price of the underlying assets during the life of the option.

Asian Option

An option contract in which the payoff is related to the average price of the underlying instrument over a set period of time. There are two basic types of an Asian option. In an average strike option, the underlying instrument is bought or sold at its average price over the period of the contract. In an average rate option, the payoff is the difference between the average price of the underlying asset over the life of the contract and some stated strike.

Asian option

An option with a payoff that depends on the average price of the underlying asset during a period of time during the life of the option.
References in periodicals archive ?
You could throw in an Asian option with cuapao buns, some hoisin sauce and Sriracha, fresh cilantro leaves, spring onions and cucumber.
Bin and Fei (2006) applied the intuition binomials tree method to price Asian option under the constant elasticity of variance.
In this paper, Asian option pricing problems with transaction costs and dividends under fractional Brownian motion are studied.
GERS IN ADMIN: THE ASIAN OPTION CARDIFF owner Tan Sri Vincent Tan Chee Yioun flew for 13 hours across the world to watch Malky Mackay's City side draw 1-1 with Watford on Easter Monday.
In fact, the IDI option is similar to an Asian option on the geometric average of the one-day interbank interest rate (CDI), between the trade date and the expiration of the option.
(2006) for Asian option pricing in the Black and Scholes framework.
Secretary General Annan's term for another five years in 2002, and that it would now be ''fair to come back to (an) Asian option.''
This is known as an Asian option. Unlike traditional options, where the payout is the difference between the strike price and the current asset price, Asian options pay off based on the difference between the strike price and some predefined average price of the underlying asset.
The airport has seen a substantial increase in the number of passengers from mainland China, and SSP recognised that a traditional Asian option would be most popular with these travellers.
This paper is concerned with one of the exotic options called an Asian option. This option is a path dependent option whose final payoff depends on the paths of its underlying asset.
Moreover, when [lambda] = 0, parameter q and r is constant, (17) and (19) simplify to the standard Asian option with geometric average on assets driven by geometric Brownian motion which is consistent with the result from Kemna and Vorst (1990).
As noted by Almeida and Vicente (2006), an IDI option is just an Asian option whose payoff is a function of the short-term rate through the path between the trading date t and the option maturity date T.

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