Definition of Asian option:
Asian options are also known as average options.
Option contract in which the payoff (difference between the purchase price and the exercise price) is based on the average price of the underlying asset on a specific set of dates over a period and (unlike an American option or European option) not on a single date. These option names, however, refer only to the types of options and not to any geographical area. Also called Asian style option, average option, average price option, average rate option, or average style option.
An Asian option is an option type where the payoff depends on the average price of the underlying asset over a certain period of time as opposed to standard options (American and European) where the payoff depends on the price of the underlying asset at a specific point in time (maturity). These options allow the buyer to purchase (or sell) the underlying asset at the average price instead of the spot price.
Meaning of Asian option & Asian option Definition