Asian option

Asian option
Option based on the average price of the asset during the life of the option. The New York Times Financial Glossary
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An option whose payoff is based upon the average value of an underlying over a specified period of time.
See underlying. Also see American option, European option and Bermuda option. American Banker Glossary
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option based on the average price of the underlying assets during the life of the option. Bloomberg Financial Dictionary
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Asian options are based on an average price of a commodity over a period of time, rather than on a single price taken at the end of a period. Asian options are currently available only OTC. Exchange Handbook Glossary

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Asian option UK US noun [C]
STOCK MARKET, FINANCE an option (= the right to buy or sell shares, etc.) whose price is calculated on its average price over a particular period of time rather than on the day it is sold: »

An Asian option can protect an investor from the volatility risk that comes with the market.

Compare AMERICAN OPTION(Cf. ↑American option), EUROPEAN OPTION(Cf. ↑European option)

Financial and business terms. 2012.

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