Average Price/Rate Option

   An option whose settlement value is based on the difference between the strike price of the option and the average of the spot rates of the underlying instrument on which the option is based, over the life of the option. The averaging can be agreed to be taken at any point in the life of the option and readings can be at any specified interval and frequency. Also known as an Asian option.
   ► See also Option, Strike Price.

Financial and business terms. 2012.

Look at other dictionaries:

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