An abbreviation for moving average barrier option; a barrier option which has a regular European option payoff, but is triggered when the moving average underlying price breaches/ hits a prespecified barrier level. The moving average price (MAP) has the potential to alleviate the impact of short-term price fluctuations and provides investors with protection against price manipulations. It is typically calculated based on the current price as well as the prices in the nearest periods over a fixed length.
The moving average price (MAP) can be used as underlying in American-style MABOs , lookback MABOs, and resettable MABOs.
