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FYI--Path-Dependent Options: Valuation and Applications
Journal article

FYI--Path-Dependent Options: Valuation and Applications

William Hunter and David Stowe
Economic review (Atlanta, Ga.), Vol.77(4), p.30
07/01/1992

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Abstract

Path-dependent options are contracts entitling their holders to a cash flow that depends on the price path taken by the asset underlying the contract. The valuation of two popular kinds of path-dependent options--lookback and average-rate options--and their advantages and risks are discussed.
Assets Contracts Securities

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