When making decision, the HBR article suggests that you own…

When making decision, the HBR article suggests that you own mind may be your worst enemy. The authors describe “hidden traps” that may lead to less than rational and objective decisions.  I am reminded of the time I spent three years exhaustively researching which new car to purchase.  I have over 150K miles on this vehicle and I took great care of it because it had all the features I want in a car.  In the end, I purchased the same make and model I had been driving for 12 years. I justified my decision as a excellent choice by dismissing data that would have led to a different outcome. This is an example of which trap?

Suppose the recently observed prices of a stock are S(0) = 8…

Suppose the recently observed prices of a stock are S(0) = 85, S(1) = 90, S(2) = 88, S(3) = 87,  S(4) = 87, and S(5) = 88, where S(t) is the stock price at time t. Suppose the options were purchased at time t = 0, and the expiration time is T = 5 for parts A) and B).A)    What is the payoff on an 80 strike Asian option given it is an arithmetic average price call?B)    What is the expected payoff of an Asian geometric average strike put option?