Average Price Call

DEFINITION of 'Average Price Call'

A type of option where the payoff is either zero or the amount by which the average price of the asset exceeds the strike.

BREAKING DOWN 'Average Price Call'

The average price of these exotic options is derived with a timeframe that is determined at the creation of the option.

RELATED TERMS
  1. Average Price Put

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  3. Cash-Or-Nothing Call

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  4. Average Strike Option

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  5. Asian Option

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RELATED FAQS
  1. What's the difference between a regular option and an exotic option?

    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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    Learn about how the difference between in the money and out of the money options is determined by the relationship between ... Read Answer >>
  3. How do speculators profit from options?

    As a quick summary, options are financial derivatives that give their holders the right to buy or sell a specific asset by ... Read Answer >>
  4. How do I change my strike price once the trade has been placed already?

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  5. What happens when a security reaches its strike price?

    Learn more about the moneyness of stock options and what happens when the underlying security's price reaches the option ... Read Answer >>
  6. How are call options priced?

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