The fixed strike Asian option has a a payoff that is based on the average of the underlying over some period of time t1...tn
The average reduces the impact of big movement in the underlying just before expiration compared to vanilla options.
List of symbols
Value of the fixed strike Asian call option price at expiration
Value of the fixed strike Asian put option price at expiration
T
Expiration date
K
Strike (excercis) price
Average of the asset price based on n samples in time
n
Number of average samples
First sample of the asset that is used for averaging
.png "Asian option (fixed strike) equation")
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