Asian Option

An option whose payoff depends on the average price of the underlying asset over a certain period of time as opposed to at maturity. Also known as an average option.


This type of option contract is attractive because it tends to cost less than regular American options.

An Asian option can protect an investor from the volatility risk that comes with the market.




Dragons, Samurai Warriors, And Sushi On Wall Street - From samurai to sushi, there's no denying the East Asian influence on investing terminology.

Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.
Related Terms

American Option

Average Price Call

Average Price Put

Bermuda Option

European Option

Exotic Option

Maturity

Option

Underlying

Volatility

Word Search:

Categories