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.