Call or put option whose strike price is not determined until the option is exercised. At the time of exercise, the holder can exercise the option at any underlying price that has occurred during the option's life. In the case of a call, the buyer will choose the lowest price, and in the case of a put, the buyer will choose the highest price. The premium on such options tends to be high since it gives the buyer great flexibility, and the writer has to take on a lot of risk.
Related information about lookback option:
- Lookback option - Wikipedia, the free encyclopedia
Lookback option. From Wikipedia, the free encyclopedia. Jump to: navigation, search. Lookback options are a type of exotic option with path dependency, ...
- Lookback Option Definition | Investopedia
An exotic option that allows investors to "look back" at the underlying prices occurring over the life of the option and then exercise based on the underlying ...
- Lookback option - YouTube
Jun 23, 2008 ... Lookback options are often used for commodities, as a lookback call is a way to buy the asset at the lowest price and a lookback put is a way to ...
- What is lookback option? definition and meaning
Definition of lookback option: Call or put option whose strike price is not determined until the option is exercised. At the time of exercise, the holder can exercise ...
- Lookback Option
A lookback option is a path dependent option settles based upon the maximum or minimum underlier value achieved during the entire life of the option.
- Lookback Option - Financial Dictionary - The Free Dictionary
An option that allows the buyer to choose as the option strike price any price of the underlying asset that has occurred during the life of the option. For a call ...
- Lookback Options
This type of lookback option is only settled in cash, and has the strike pretermined at inception and the payoff is the maximum difference between the optimal ...
- What is LOOKBACK OPTION? - The Law Dictionary
Definition of LOOKBACK OPTION: When a buyer can review the price changes and take the highest profit point. Refer to fixed strike and floating strike look back ...