Why is the cost of an Asian basket put option to Microsoft considerably less than the cost

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Why is the cost of an Asian basket put option to Microsoft considerably less than the cost of a portfolio of put options, one for each currency and each maturity (see Business Snapshot 2.3.)?

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Risk Management And Financial Institutions

ISBN: B008AUN1VW

1st Edition

Authors: John C Hull

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Question Posted: Jul 11, 2024 02:01 AM

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Why is the cost of an Asian basket put option to Microsoft considerably less than the cost

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Risk Management And Financial Institutions

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