Geometric Asian Option Calculator

Price a continuously sampled, fixed-strike geometric-average Asian call or put in closed form; this is not an arithmetic-average Asian option model.

Description

Price a continuously sampled, fixed-strike geometric-average Asian call or put in closed form; this is not an arithmetic-average Asian option model.

Geometric Asian Option Calculator: Price a continuously sampled, fixed-strike geometric-average Asian call or put in closed form; this is not an arithmetic-average Asian option model.

When to use Geometric Asian Option

Use this financial calculation for a transparent scenario, ratio, valuation, pricing, or cash-flow estimate when all amounts, dates, rates, and compounding conventions are defined consistently.

Spot price
Required number input.
Strike price
Required number input.
Time to expiration (years)
Required number input.
Risk-free rate (%)
Required number input.
Dividend yield (%)
Required number input.
Annualized volatility (%)
Required number input.
Option type
Required string input.

How Geometric Asian Option works

Price a continuously sampled, fixed-strike geometric-average Asian call or put in closed form; this is not an arithmetic-average Asian option model. The tool evaluates the supplied inputs together and returns the named outputs below; it does not infer omitted operating conditions or change the units shown.1

Option price
The resulting option price returned as a number.
Discounted expected geometric average
The resulting discounted expected geometric average returned as a number.

Limitations and assumptions

  • Option values depend on contract terms and model assumptions for volatility, rates, dividends, exercise, barriers, monitoring, discretization, and underlying dynamics. Black–Scholes and small trees can misprice early exercise, jumps, smiles, path dependence, and illiquid contracts.
  • Use finite inputs in the displayed units and preserve more precision than the final presentation requires. Independently verify safety-critical, financial, compliance, or production decisions.

Alternative or Complementary approaches

Test multiple scenarios, reconcile rates and cash-flow dates, retain full precision, and verify contractual, tax, market, and accounting inputs with current primary documents or qualified advice.

References

  1. Option (finance) — Wikipedia contributors

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