An option contract that gives the buyer the right to exercise the option at the average of the prices of the underlying during its life is called:
A) European-style option
B) American-style option
C) Bermudan option
D) Asian option

Question

Quizplus · Accepted Answer

An Asian option is an option contract that gives the buyer the right to exercise the option at the average of the prices of the underlying during its life.

An Option Contract That Gives the Buyer the Right to Exercise