Definition
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.
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