For Asian Options

question 52

Multiple Choice

For Asian options,

• A)the option is exercisable on discrete dates before maturity.
• B)the option holder chooses as the exercise price any of the asset prices that occurred before the final date.
• C)the option payoff is zero if the asset price is on the wrong side of the exercise price and otherwise is a fixed sum.
• D)the exercise price is equal to the average of the asset's price during the life of the option.

---

Definitions:

Dodd-Frank Act

A comprehensive financial reform law passed in 2010 in response to the financial crisis, aimed at reducing risks in the financial system.

TARP

Troubled Asset Relief Program, a government initiative to purchase toxic assets and equity from financial institutions to strengthen the financial sector during the 2008 financial crisis.

Government Deficit Reduction

Measures taken by a government to decrease the amount by which its spending exceeds its income, often implying budget cuts and/or tax increases.

FTC Act

The Federal Trade Commission Act, which established the Federal Trade Commission (FTC) to prevent unfair competition, deceptive practices, or misleading advertisements in the marketplace.