Task: Instance Description Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes the instance 'average rate classification'?

A. Asian option classifier indicating that the payoff is based on the difference between a fixed strike price and the calculated average price of the underlying
B. strategy that uses an arithmetic mean calculation
C. strategy that uses an geometric mean calculation
D. Asian option classifier indicating that the payoff is based on the difference between the price of the underlying at expiration and a strike price equal to the calculated average price of the underlying issue

Answer: Asian option classifier indicating that the payoff is based on the difference between a fixed strike price and the calculated average price of the underlying