This thesis will focus on European style Arithmetic Asian options where the and conclusions are done only for Asian call options with maturity in 30 days and . Asian. Options. 1 Introduction to Exotic Options. 2 Asian Options . There are eight basic kinds of Asian options: 1. Put or call. 2. Geometric or arithmetic average.
Geometric Asian Call Option Payoff = max [0, geometric average of underlying's price – exercise price]. Arithmetic Asian Put Option Payoff = max [0, exercise. Asian options are path dependent derivatives whose payoffs depend on the average of the of an arithmetic average call can be approximated as follows. c = e.
A call option gives the buyer the right to buy the underlying asset while a put gives the buyer to sell. The agreed price in the contract is known as the strike price;. Asian options are popular instruments since they tend to be less expensive than comparable Vanilla.