Asian Tail

DEFINITION of 'Asian Tail'

An option feature whereby a reference price is activated at the end of an option should the underlying fall below a specified average before option expiry.

BREAKING DOWN 'Asian Tail'

This method of averaging the level of the underlying protects the investor from sudden and adverse price movements.

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RELATED FAQS
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    Before learning about exotic options, you should have a fairly good understanding of regular options. Both types of options ... Read Answer >>
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