RICING ASIAN Derivatives wernt s Gromerric Continuc AVERAGING5.1 = By aur 10) IebewsK'> Ole «constant eerie price aid B > 0 sw corstant pel ‘he pools (18) and (1.6) cores the cll andy respecte. (1.rhand (1.8) cortespod tothe binary call and pt respeetive al UL) ond (1-10) corespond to the averages binary call rd pu apesnes Finally, te correct the anaes st cat tn Wika eal (93) Wilt ta (1997), the PDL inthe pic ated forthe ane of the eal hermes EX) aad 9 “THE GENERAL PRICING FORMULA Using aus the share price satisbing (11) se by Sia) = SU) exp (ue ~ D~ a2i2H — 4) + aiNiw) — NOW) (BL foe = 1 0. Using hi (1.2) fos that For expat Hn) = + F ~ 1) bg Su)» HP +e 3 (Nin) ~ Nid, Using 21), a als hat Instr) = si + We ~ D~ otaKr— 9 + o«kir) ~ XW), ew + (00 — fo ~ na) @ [/ eon ~ suyocay ~ xpd the rand vector (a ‘has bivariate normal strbaton wth mean vec (0,0 and arenes Inst "Ws (aD a OKT 4 oN = Qa) w= 0 aura WD 1 r= Og + 7 + Ne as) shore = ain “in dibton” and whee Nie Na Disartemoraldnbaher with meu veto (20) anae Kas snr frat nd 2 alway replace Theorem 21th Hal mene 7 ye st [Sf stenss 8.70 hon pe eu edad naDISK SUBMISSION INSTRUCTIONS