Asian option — concept

About this app

Path dependence made tangible: a random price path and its sluggish running average Ā(t) in course color — Asian pays on Ā, European on the final price. Roll paths, compare payoff bars, and watch mean Asian < mean European across many paths. Debunks “only where the price ends up matters”.

Subject: Financial derivatives

More from Financial derivatives

• Asian option — details
• Exercise styles — details
• Exercise styles — concept
• Binomial tree — details
• Binomial tree — concept
• Cap / floor / collar — concept
• Credit default swap — details
• Credit default swap — concept

A VisuApp by heyprof: interactive, free in your browser, no sign-up. What is a VisuApp? · All apps