You Hold a Fixed-Strike Lookback Put Option Written on a Stock

question 14

Multiple Choice

You hold a fixed-strike lookback put option written on a stock that was at-the-money at inception.The stock price at inception was $56,the stock price at maturity is $63,and the lowest and highest stock prices observed over the option's life are,respectively,$52 and $64.The payoff from the option at maturity is

• A)Zero.
• B)$4.
• C)$8.
• D)$11.

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