Business and Personal Finance Dictionary

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• LOOKBACK OPTION
  
  An option with a payoff based on the path of some risk factor from the option's inception until its expiration. Examples of lookback options include a Call (Put) with (a) underlying price equal to the maximum (minimum) of the reference price during the option's life, and a given strike, or (b) underlying price equal to the reference price at the option's expiration, and strike equal to the minimum (maximum) of the reference price during the option's life.
  
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