What Is the Payoff on a 90 Strike Asian Option

question 10

Multiple Choice

What is the payoff on a 90 strike Asian option given it is a geometric average price put? The recent prices are 89,90,91,87,87,and 88.

• A) 1.25
• B) 1.35
• C) 1.45
• D) 1.55

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Definitions:

Blacksmiths

Artisans who work with metal, particularly iron, using tools to forge and shape it into products such as tools, weapons, and structures.

AFL

The American Federation of Labor, a national federation of labor unions in the United States, founded in 1886 and focused on skilled workers.

Knights of Labor

A significant labor organization in the United States during the 19th century that sought to organize workers across different industries to improve working conditions.

Unions

Organizations formed by workers to protect their rights, negotiate collective contracts, and provide support to members on employment matters.