This chapter moves from European options—where the payoff depends only on the terminal stock price—to path-dependent options, where the payoff is influenced by the entire trajectory of the underlying asset. These contracts are especially important in practice, since many exotic derivatives (Asian, barrier, and lookback options) rely on the historical behavior of the asset rather than just its final value.

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Path-Dependent Asian Options

  • Aaron De la Rosa

摘要

This chapter moves from European options—where the payoff depends only on the terminal stock price—to path-dependent options, where the payoff is influenced by the entire trajectory of the underlying asset. These contracts are especially important in practice, since many exotic derivatives (Asian, barrier, and lookback options) rely on the historical behavior of the asset rather than just its final value.