Encyclopedia of Investment Terminology

Return to Stock Market and Investment Encyclopedia Index

Asian Option

An Asian option is an option contract where payoff can vary. The payoff is set according to the average price of an asset on that contract. This involves the change in price of that contract during a period of time. The payout is different from that of other options in that it does not work with determining its payoff upon maturity but will do so over time.

Return to Index

Copyright 2008 StockDic.com
All Rights Reserved.