Asian Option

What Does It Mean?
What Does Asian Option Mean?
An option whose payoff depends on the average price of the underlying asset over a certain period of time as opposed to at maturity. Also known as an average option.
Investopedia Says
Investopedia explains Asian Option
This type of option contract is attractive because it tends to cost less than regular American options.

An Asian option can protect an investor from the volatility risk that comes with the market.
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