Description Usage Arguments Details Examples

Returns the price of an asian option using a binomial tree approach

1 2 |

`S` |
the initial stock price |

`K` |
the strike price |

`r` |
the risk free (continuously compounded interest rate) |

`delta` |
the annual dividend rate |

`sigma` |
the volatility |

`t` |
the expiration time (default one year) |

`call` |
TRUE if option is a call, FALSE is option is a put |

`arithmetic` |
TRUE if arithmetic average is used, FALSE if geometric average is used |

`price` |
TRUE if average price is used, FALSE if average strike is used |

`h` |
the number of subdivisions between 0 and t (default 10) |

Uses a forward tree to compute u and d. p is the risk-neutral probability

1 | ```
asianOption(40, 39, 0.05, 0, 0.3, 3/12, call=FALSE, arithmetic=TRUE, price=TRUE, h=3)
``` |

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