In the Case of Asian Option

question 62

Multiple Choice

In the case of Asian option:

• 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.