Asian-in Asian-out options?

M

mzm21

I am trying to find out what is an 'option on a basket of equities Asian-in Asian-out'? I understand basket options and Asian options, but I am unfamiliar with the term Asian-in Asian-out. Anyone care to explain? Thanks!
 
I couldn't reply earlier as I was busy with my academics. ( I was still in college you know)
The distinction is that an 'Asian in' has a floating strike and 'Asian out' has a fixed strike.
For simplicity let's consider how a call option works for both in and out.
S=Settlement price
K=Strike
We know that the payoff at maturity is (S-K,0) for calls.
The former i.e Asian in has a fixed strike(decided at the beginning of the contract) and a floating settlement price(taken as an average of Asian setting date prices).

The latter i.e Asian out has a floating strike(taken as an average of the Asian setting date prices) and fixed settlement price(i.e the price at maturity)

This is analogous to the lookback option types
 
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