What does Asian Option mean?
An option in which the payout on the option is determined by taking an average of the price of the underlying asset over a pre-determined period of time. Advantages to asian options include reduces the relative volatility of the option compared to American and European options, which generally also reduces the overall cost.
Also known as an "average value option."
Futures Knowledge Explains Asian Option
Asian Options differ from American Options, which can be exercised at any time prior to the point of expiration, and European Options, which can only be exercised on the date of expiration.