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Type of option in which the payoff depends on the average of a sequence of the prices of the underlying asset over some predetermined period of time. This sequence or pattern is the path that determines the value of the option dependent on it. In contrast, the payoff of a 'straight' option (such as a European option or call option) is determined by the value of the underlying asset on the option's exercise or expiration date. Path-dependent options include Asian options, barrier option, chooser option, and lookback option.

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