Lookback strike put option
A lookback option is 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 asset's optimal value.
This type of option reduces uncertainties associated with the timing of market entry.
Lookback option - Wikipedia
The option's strike price is fixed at purchase. However, the option is not exercised at the market price: In the case of a put, the option can be exercised at the asset's lowest price. The option settles at the selected past market price and against the fixed strike.
Opzione (finanza) - Wikipedia
The option's strike price is fixed at maturity. For a call, the strike price is fixed at the lowest price reached during the life of the option. For a put, it is fixed at the highest price.
The option settles at market and against the floating strike. While lookback options are appealing to investors, they can be expensive and are also considered to be quite speculative. Dictionary Term Of The Day.
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This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. What is a 'Lookback Option' A lookback option is 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 asset's optimal value.
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