Question
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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Essential Finance Guide
Authors: DK Publishing
1st Edition
078948157X, 978-0789481573
