Investment Dictionary:
Asian Option
An option whose payoff depends on the average price of the underlying asset over a certain period of time as opposed to at maturity. Also known as an average option.
Investopedia Says:
This type of option contract is attractive because it tends to cost less than regular American options.
An Asian option can protect an investor from the volatility risk that comes with the market.
Related Links:
From samurai to sushi, there's no denying the East Asian influence on investing terminology. Dragons, Samurai Warriors And Sushi On Wall Street
An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. Options Basics Tutorial
