Meaning of lookback | Babel Free
Definitions
A kind of exotic option whose payoff depends on the optimal (maximum or minimum) underlying asset's price occurring over the life of the option.
Examples
“Another interesting path-dependent option is the lookback option. A lookback call⟳ allows you to buy⟳ the asset at the lowest price and a lookback put⟳ allows you to sell⟳ it at the highest price attained during the life of the option.”
“The principle of a lookback option is to give⟳ the investor the maximum payoff based on perfect hindsight.”
CEFR level
B2
Upper Intermediate
This word is part of the CEFR B2 vocabulary — upper intermediate level.
This word is part of the CEFR B2 vocabulary — upper intermediate level.
See also
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