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
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  3. Exotic Option

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  1. Regular Vs. Exotic Options: What's the Difference?

    Before learning about exotic options, you need a fairly good understanding of regular options. Read Answer >>
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