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.

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Definitions:

Cultural Reason

A cultural reason refers to the rationale or motive behind actions, beliefs, or customs, rooted in the traditions or values of a particular society.

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Unreliable Transportation

Transportation services that are inconsistent, unpredictable, or unavailable, affecting individuals' ability to commute effectively.

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