Permutations of Asian Option
There are numerous permutations of Asian option; the most basic are listed below:
Fixed strike (also known as an average rate) Asian call payout
where A denotes the average, and K the strike. The equivalent put option is given by
The floating strike (or floating rate) Asian call option has the payout
where k is a weighting, usually 1 so often omitted from descriptions. The equivalent put option payoff is given by
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