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6. a.) Explain what is an Asian Option and describe its main characteristics. What are the differences between this and the American and European ones?

a.) Explain what is an Asian Option and describe its main characteristics. What are the differences between this and the American and European ones?

b.) Explain using a non arbitrage argument why the price of the forward can not be other thing that K = S0(1 + r), where K is the strike price, S0 is the price of the underlying today and r is the risk-free interest rate.

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