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Asian option

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Asian option
An Asian option is relatively straightforward. It is an otherwise simple option with an exercise price that is determined by taking the average price of the underlying security over a pre-determined period and applying a fixed ...

 


Asian Option
Asian Option definition :
Option based on the average price
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An Asian option (also called an average option) is an option whose payoff is linked to the average value of the underlier on a specific set of dates during the life of the option. There are two basic forms: ...

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ASIAN OPTION - Definition: An Average Price Option (q.v.). Example: Some banks offer their retail custo...
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Asian option
option based on the average price of the asset during the life of the option.
Bargain-purchase-price option ...

Asian Option
An option whose payoff depends on the average price of the underlying asset during some portion of the life of the option.
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Asian option
An option whose payoff is based upon the average value of an underlying over a specified period of time. See underlying. Also see American option, European option and Bermuda option.
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Asian option
Option based on the average price of the underlying assets during the life of the option.

Asian options), binomial methods are less practical due to several difficulties, and Monte Carlo option models are commonly used instead.

Average strike option
An average strike option is a type of Asian option. Similar to a standard option, except that the strike price is taken to be the arithmetic average of the price of the underlying asset during the life of the option.

For example, Asian options that do not have easy solutions via a Black Scholes type model are generally priced via Monte Carlo option pricing techniques. The Monte Carlo approach involves estimating a result based on averaging numerous trials.

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Arithmetic average (mean) rate of return
Asian Option
Average age of accounts receivable
Average Price
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Asian banks that collect deposits and make loans denominated in US dollars.
Asian option
Option based on the average price of the underlying assets during the life of the option.
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asset at expiration, but on the difference between the strike price and the average price of the underlying asset during the option's term. A TAPO, Traded Average Price Option, (traded average price option) is also known as an Asian option.

[Harvey] Asian option An option whose payoff depends on the average price of the underlying asset during some portion of the life of the option. [CFTC] Option based on the average price of the asset during the life of the option.

See also: Values, American option, Exercise price, Abandonment, Abandonment option

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