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.

  1. Average Price Put

    A type of option where the payoff depends on the difference between ...
  2. Asset-or-Nothing Put Option

    An option payoff that is equal to the asset's price if the asset ...
  3. Exotic Option

    An option that differs from common American or European options ...
  4. Multi Index Option

    A type of investment in which the payoff depends on the difference ...
  5. Vanilla Option

    A financial instrument that gives the holder the right, but not ...
  6. In The Money

    1. For a call option, when the option's strike price is below ...
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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 >>
  2. How does the term 'in the money' describe the moneyness of an option?

    Find out what in the money means about the moneyness of call or put options and what it indicates about the relationship ... Read Answer >>
  3. What is the difference between in the money and out of the money?

    Learn about how the difference between in the money and out of the money options is determined by the relationship between ... Read Answer >>
  4. How do I set a strike price for an option?

    Learn about the strike price of an option and how to set a strike price for call and put options depending on risk tolerance ... Read Answer >>
  5. How Do Speculators Profit From Options?

    Options are a risky game, but you can learn speculators' tricks to use them to your advantage. Read Answer >>
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