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Tim Xiao
BMO
Position
Department
Field of research
Economics (General Management)
Email
cfrm17@yahoo.com
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Asian Basket Relative Performance Option Model
Social Sciences (Economics)
117 views
Date of upload:
22.08.2023
Co-author:
Abstract:
A pricing model for basket Asian relative performance options (RPO) is proposed by using Monte Carlo simulation. In a basket Asian RPO, payoff is determined by the difference between the performance of a reference stock and that of a basket of stocks, where performance is defined as the ratio of (weighted) average of two sets of averaging dates.

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