An option with a payoff that depends on the average price of the underlying asset during at least some portion of the life of the option is called ________ option.
A) an American
B) a European
C) an Asian
D) an Australian

Question

Quizplus · Accepted Answer

An option with a payoff that depends on the average price of the underlying asset during at least some portion of the life of the option is called an Asian option. The other options listed (American, European, and Australian) do not have payoffs that depend on the average price of the underlying asset.

An Option with a Payoff That Depends on the Average