easy · Quantitative Finance derivatives

An arithmetic-average Asian call is struck at 100 on a stock currently trading at100. Over the life of the option, the stock is observed quarterly at prices of 98,102, 105, and99.

What is the terminal payoff of this option?

  1. $1.00
  2. $0.97
  3. $5.00
  4. $0.00

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