New Asian Lookback Option revolutionizes hedging and speculating in markets!
A new type of exotic option called the Asian Lookback option (ALB) was created to combine the benefits of existing options for hedging and speculating. The researchers used Monte Carlo simulations based on the Black-Scholes model to price the ALB. They found that the price of ALB can be adjusted to suit different needs, making it a flexible and customizable derivative for investors.