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Webster's New World Finance and Investment Dictionary » lookback option
lookback option
lookback option definition - finance
An
option in which the strike price is equal to either the lowest underlying
security value (call option) or the highest underlying security value (put
option) over a period of time that ends on the option expiration date. Lookback
options are typically more expensive than regular options because they have
more of a chance to be exercised than regular options do.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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