Average Rate Option
This Issue in United States
Average Rate Option
Concept of Average Rate Option in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed conditions) where the settlement is based on the difference between the strike and the average price of the underlying instrument over a predetermined period. An average rate option is also known as an Asian option.
Resources
See Also
- Derivatives Contract
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