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
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
option based on the average price of the underlying assets during the life of the option. Bloomberg Financial Dictionary
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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