Investment Banking
Takedown of Securities
July 17, 2021
Investment Banking
Takedown Off The Shelf
July 17, 2021

A path-dependent option whose payoff depends solely on the route taken during a specified period of time. Examples of this option include average options or Asian options where the value depends on every step taken by the underlying asset during the life of the option. Hard path-dependent options can be classified as dense path-dependent options and light path-dependent options.

This type of option is also known as a path-dependent option with strong memory.

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