Backward Starting Asian Option

Accounting
Prepaid Expenses
January 22, 2023
Islamic Finance
Dain Thabit
January 22, 2023

An Asian option in which the average underlying price is computed over a subinterval of the trading period, rather than the whole trading period. The subinterval usually has a specific starting point in time. This option provides investors with an opportunity to partially look back in hindsight.

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