Pricing put option application asian


An Asian option (or average value option) is a special type of option contract. For Asian options the payoff is determined by the average underlying price over some pre-set period of time. There are two types of Asian Fixed Strike option, the Asian Fixed Strike call and the Asian Fixed Strike put. In reality the company hardly changes its valuation on a day-to-day basis, but the stock price and its valuation change every second.

priclng This shows the difficultly in reaching a consensus about present day price for any tradable asset, which leads to arbitrage opportunities.




Asian put option pricing application

Asian put option pricing application