lookback call (put) option

lookback call (put) option definition - business

lookback call (put) option

A specialized option that gives its owner the right to purchase (sell) the underlying asset at the lowest (highest) price at which it traded between the effective date and the expiration date of the option. The added advantage of being able to look back makes this option command a relatively high premium.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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