Asian put option model questions
Maybe the annual data is approximately normally distributed with a specified mean and standard deviation. Also known as an average option. This articles explores Asian options, and offers an Excel spreadsheet based on geometric and arithmetic averages.Of the many types of exotic options that are available for investors, Average Rate Options or, as they are better known, Asian Options are some of the most practical.
Asian put option model questions options are priced based on the average price of the underlying instrument. Both the strike value and expiration value can be calculated from the average value over a period of time.Asian options are no more difficult to understand than their vanilla counterparts. The average price over the month would determine if a payout is due. Option traders use various option pricing models to calculate theoretical option values.
These mathematical models use certaiLearn how to price options with the Monte Carlo method, and get a pricing spreadsheet for European, Asian, Barrier and Lookback options.Several methods exist to price options. Binomial trees, for example, calculate the value of an asset over a series of time steps. At every step, the asset price can increase or decrease based on an up or down probability.