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.
E) they are only sold in Asian financial markets and their payoff is based on the average price of the underlying asset.

Question

Quizplus · Accepted Answer

Asian options' payoff is determined by the average price of the underlying asset over a certain period, unlike American and European options which are based on the price of the underlying asset at a specific point in time.

Asian Options Differ from American and European Options in That