
Explanation:
Asian options are most useful when the buyer wants to hedge or reduce the effect of price fluctuations over time.
Therefore, the most likely desirable use is B.
Q-19.3. When is an Asian option MOST LIKELY to be desirable:
A
A speculator who wants to maximize potential payoff
B
A hedger with a series of fluctuating forward input costs
C
A hedger with a single lump-sum forward input cost
D
A short who wants to increase the premium vis-a-vis a regular option with the same maturity
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