lookback
Word Rarity
Very rare
Frequency: Zipf frequency 1.57 in modern English
20
Scrabble Score
8
Letters
2
Syllables
6
Unique Chars
Meaning
noun
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.
noun
Alternative form of look-back.
Example Sentences
- "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."