It stands for Asian quanto basket option; a quanto basket option whose payoff is determined as that of an Asian option‘s payoff. An Asian quanto basket option can be perceived as consisting of multiple components. It has the characteristics of Asian options and basket options. Within the quanto basket, if at least one underlying asset is not quoted in the currency of the option payoff, the so-called quanto adjustment needs to be considered for its pricing/ valuation. Hence, the option is an Asian option combined with a quanto basket option.

This option allows investors and risk managers to participate to the return of a certain sector with an global exposure, while foreign exchange risk exposition being reined in.

It is also abbreviated as AQBO.