AVERAGE PRICE OPTION meaning in Law Dictionary

ADVANCED SOLUTION that funds the buyer a payoff corresponding to the difference between an average cost on an UNDERLYING market guide and a predefined STRIKE COST. See in addition ASIAN SOLUTION, AVERAGE STRIKE OPTION.AVERAGE STRIKE CHOICE A COMPLEX OPTION that grants the A25 buyer a payoff equal to the difference between an average STRIKE COST additionally the terminal value of the UNDERLYING market guide. See additionally ASIAN CHOICE, AVERAGE COST OPTION.AVERAGE UP a method of purchasing additional securities at increasing rates, thus raising the average cost of the complete position. See also AVERAGE DOWN.