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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