You Hold a Floating-Strike Lookback Put Option Written on a Stock.The

question 2

Multiple Choice

You hold a floating-strike lookback put option written on a stock.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)$1.
• C)$11
• D)Cannot be answered without information on the strike price.

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