An Asian option in which the average of underlying prices, interest rates, indices, etc, is calculated on all the time line of the option’s life (price path), including the initial value or observation. In theory, the life of the option should be divided into an infinite number of time intervals. To approximate the result, extrapolation technique is used.
Derivatives
Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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