# Asian put option

Essential Banking Business Economics Exchanges Finance Financial Law Forex Insurance International Finance International Trade Investment Islamic Finance Personal Finance Portfolio Management Advanced Derivatives Financial Analysis Hedge Funds Investment Banking Mutual Funds Risk Management Technical Analysis Quantitative Analysis Real Estate Valuation Associate Sites Financial Encyclopedia Investment and Finance Investment and Finance Majd Bakir Finance Quote "In Asian options, the final payoff is a function of the average of the stock price over the life of the option. Collar Covered call Fence Iron butterfly Iron condor Straddle Strangle Protective put Risk reversal. Average Price Put Vanilla Option Average Price Call Multi Index Option Call On A Put Stock Option Back Fee Russian Option Call Option. Payoff of geometric Asian call option can be calculated by substituting the arithmetic average price of the underlying asset with its geometric equivalent. Bondesson's Representation of the Variance Gamma Model and Monte Carlo Option Pricing. Learn to Use Documentation Tutorials Examples Videos and Webinars Training.

## Documentation

Please leave these two fields as-is: The geometric Asian delta is lower than the arithmetic Asian delta. Comparison of Vanilla and Asian Delta: When a business is concerned about the average exchange rate over time. Comparison of Vanilla and Asian Prices: The averaging price is first known at maturity so it must be something different?

### Asian Options - Tutorial and Excel Spreadsheet

Unlike their European counterparts which have an analytical solution in the form of the Black Scholes equation, no closed form solution exists for Asian Options when the asset is lognormally distrubuted. The output and execution time of the Monte Carlo simulation depends on the number of paths NumTrials and the number of time periods per path NumPeriods. Asian Prices using Monte Carlo Method: All the pricing functions asianbykv , asianbylevy , asianbytw , and asianbyhhm take an interest-rate term structure and stock structure as inputs.

## Asian Option

Description: Asian Prices using Monte Carlo Method: Paul Wilmott on Quantitative Finance. Since call option value decreases as strike price increases, the Asian call curve is under the Vanilla call curve. A thorough understanding of risk is essential in options trading. Because of the averaging feature, Asian options reduce the volatility inherent in the option; therefore, Asian options are typically cheaper than European or American options.

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