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Consider an Asian stock option. This derivative expires in 7 months. Over these seven months the average stock price is $32, and the stock price

Consider an Asian stock option. This derivative expires in 7 months. Over these seven months the average stock price is $32, and the stock price at maturity is $36. What is the payoff of an average strike call to the short party?

A.

$0
B.

$3
C.

$4
D.

-$4

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