A
Average Strike Rate Option (ASRO)
A
Average Strike Rate Option (ASRO)
An option whose
settlement
value is based on the difference between the
spot price
or rate at expiration and an average strike price or rate determined over the life of the option. These options are often embedded in employee stock purchase plans and pension plans. Also called
Floating Strike Option
. See
Average Price or Rate Option (APO, ARO)
(diagrams),
Floating Strike Asian Option
.
Glossary
*
A