What method involves calculating the fair value of assets by averaging prices?

The method that involves calculating the fair value of assets by averaging prices is associated with the concept of Asian options, particularly as it pertains to averaging prices over a certain period. This method is utilized to smooth out the volatility that can arise from short-term fluctuations in asset prices, providing a more stable value estimation over time.

In the context of the choices presented, the Average-price Asian Put aligns with this averaging concept; it reflects the fair value of the underlying asset by taking an average price over a specified period rather than relying solely on a single market price at expiration. This can be particularly useful in financial modeling and valuation where one seeks to derive a fair value that reflects a more comprehensive view of market conditions over time.

Other options listed do not pertain purely to averaging asset prices for fair value determination, as they relate more to risk assessments or premium adjustments not directly tied to the method in question.