Asians and cash dividends: Exploiting symmetries in pricing theory

In this article we present new results for the pricing of arithmetic Asian options within a Black-Scholes context. To derive these results we make extensive use of the local scale invariance that exists in the theory of contingent claim pricing. This allows us to derive, in a natural way, a simple PDE for the price of arithmetic Asians options. In the case of European average strike options, a proper choice of numeraire reduces the dimension of this PDE to one, leading to a PDE similar to the on...