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Average price option
An average option that pays the difference between a set exercise price and the average price of the underlying at certain specific dates or during a fixed period over the life of the option.
The payoff on an average price option differs from that on the conventional European option, which essentially corresponds to the difference between the exercise price and the price of the underlying at maturity.
Translations
Synonyms and variations
- APO
- Fixed strike Asian option 1.
- Fixed strike option 1.