# Path Dependence

*Derivatives & Options — Finicade finance glossary*

When a payoff depends not just on the final price but on the whole route it took to get there. Asian, barrier and lookback options are path-dependent, which is what makes them hard to price.

**Related terms:** [Asian Option](https://finicade.com/glossary/asian-option), [Barrier Option](https://finicade.com/glossary/barrier-option), [Monte Carlo Simulation](https://finicade.com/glossary/monte-carlo)

**Taught in:** Hull Street — Exotic Options

Source: https://finicade.com/glossary/path-dependence