Type of option in which the payoff depends on the average of a sequence of the prices of the underlying asset over some predetermined period of time. This sequence or pattern is the path that determines the value of the option dependent on it. In contrast, the payoff of a 'straight' option (such as a European option or call option) is determined by the value of the underlying asset on the option's exercise or expiration date. Path-dependent options include Asian options, barrier option, chooser option, and lookback option.

Related information about path-dependent option:

Related information about path-dependent option:

**Path Dependent Option Definition | Investopedia**

The right, but not the obligation, to buy or sell an underlying asset at a predetermined price during a specified time period, where the price is based on the ...

**Path Dependent Option**

Some exotic options are said to be path dependent. Their terminal value (at exercise or expiration) depends upon the value of the underlier, not only at that time, ...

**What is path-dependent option? definition and meaning**

Definition of path-dependent option: Type of option in which the payoff depends on the average of a sequence of the prices of the underlying asset over some ...

**Path Dependent Option - Financial Dictionary - The Free Dictionary**

An option contract whose price is determined according to some formula involving the price of the underlying asset over time. Most options have prices that are ...

**Path Dependent Option Pricing: The Path Integral Partial Averaging ...**

Nov 23, 2000 ... In this paper I develop a new computational method for pricing path dependent options. Using the path integral representation of the option ...

**Valuation of a Path Dependent Option - Meetup**

Let's start with a path independent option. • Call option on a non-dividend paying stock. • Model assumptions - Brownian Motion: • Black and Scholes Formula: ...

**Akahori : Some Formulae for a New Type of Path-Dependent Option**

In this paper we present an explicit form of the distribution function of the occupation time of a Brownian motion with a constant drift (if there is no drift, this is the ...

**What is PATH-DEPENDENT OPTION? - The Law Dictionary**

Definition of PATH-DEPENDENT OPTION: An option whose payment depends on the price path of the asset at another time. There are many types of this option.