|
|
Exotic Options - Asian Options |
RELATED WIKI ARTICLES
Related Articles
| This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. |
Asian Options are options whose payouts depend on the average price of the underlying asset over a specific period, generally, the life of the option. These options fall under two broad categories:
- Average Price Options: The payoff at maturity is equal to the average price of the underlying asset over a period minus the fixed strike price for the option.
- Average Strike Options: The payoff is equal to the price of the underlying asset at maturity minus a variable strike, which is equal to the average price of the underlying asset over a period.
In most cases, these options are structured to be exercised at maturity (like European Options). However, some special structures allow the options to be exercised anytime and pays out based on average-to-date price of the underlying assets.
This page is part of the Wikinvest Guide to Options. Related articles within this guide include:
Retrieved from "http://www.wikinvest.com/wiki/Exotic_Options_-_Asian_Options"
Bet you've never seen portfolio analytics like these.
Introducing SigFig — from the creators of
| |||||||
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
 |