Asian option definition

Asian option

Option contract in which the payoff (difference between the purchase price and the exercise price) is based on the average price of the underlying asset on a specific set of dates over a period and (unlike an American option or European option) not on a single date. These option names, however, refer only to the types of options and not to any geographical area. Also called Asian style option, average option, average price option, average rate option, or average style option.

Asian option is in the Commodities & Precious Metals Trading, Currency Trading and Securities & Futures Trading subjects.

Asian option appears in the definitions of the following terms: American option, average price option, Asian style option, average style option, average rate option, average option and European option

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