Asian Option

Dictionary Says

Definition of 'Asian Option'

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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. American Option

    An option that ...
  2. Average Price Call

    A type of option ...
  3. Average Price Put

    A type of option ...
  4. Bermuda Option

    A type of exotic ...
  5. European Option

    An option that ...
  6. Exotic Option

    An option that ...
  7. Volatility

    1. A statistical ...
  8. Underlying

    1. In ...
  9. Option

    A financial ...
  10. Maturity

    The period of ...

Articles Of Interest

  1. Dragons, Samurai Warriors And Sushi On Wall Street

    From samurai to sushi, there's no denying the East Asian influence on investing terminology.
  2. Options Basics Tutorial

    Discover the world of options, from primary concepts to how options work and why you might use them.
  3. Retirement Savings Tips For 35- To 44-Year-Olds

    Learn how the "sandwich generation" can save for retirement while taking care of their kids and parents.
  4. Derivatives 101

    Learn how to use this type of investment as an alternative way to participate in the market.
  5. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  6. Finding Your Investing Comfort Zone

    Choosing the right investments for you is the best way to feel comfortable with your portfolio.
  7. Investors: Rely On Your Gut

    Find out how your personality and natural instincts can direct your investment choices.
  8. Simplify Your Portfolio

    Faced with an overabundance of choices, many investors forget to stick to the basics.
  9. Hedging With ETFs: A Cost-Effective Alternative

    The benefits of ETFs for hedging are clear and investors of all sizes are taking notice.
  10. Minis Provide Low-Cost Entry To Futures Market

    These contracts provide access to commodities without a huge capital commitment.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center