Asian options differ from American and European options in that
A)they are only sold in Asian financial markets.
B)they never expire.
C)their payoff is based on the average price of the underlying asset.
D)they are only sold in Asian financial markets and they never expire.

Question

Quizplus · Accepted Answer

Asian options have a payoff based on the average price of the underlying asset over a certain period of time, unlike American and European options which have a fixed strike price and a payoff based on the spot price at expiration. Asian options can be traded in any financial market, and, like other options, they do expire.

Asian Options Differ from American and European Options in That