Search Investopedia

Average Price Put

Filed Under » ,
Dictionary Says

Definition of 'Average Price Put'

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

Investopedia explains 'Average Price Put'

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

Related Definitions

  •

    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.
    Read More »

  • 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.
    Read More »

  • Short Selling

    The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to ...
    Read More »

    • Strike Price

      The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. ...
      Read More »

    • Exotic Option

      An option that differs from common American or European options in terms of the underlying asset or the calculation of how or when the investor receives a certain payoff. These options ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions