In One Type of a Lookback Option

question 12

Multiple Choice

In one type of a lookback option,

• A) You can decide to change the option from a call to a put or vice versa at the last minute.
• B) You can take any observed price prior to maturity as the strike of the option.
• C) You can take the average observed price of the underlying in determining the option payoff.
• D) The initial price of the underlying acts as the strike price of the option.

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Definitions:

Gas

A state of matter consisting of particles that have neither a defined volume nor defined shape, typically able to expand freely.

Market Revolution

Refers to the significant economic transformation in the United States during the early 19th century, characterized by rapid developments in transportation, commercialization, and industrialization, leading to profound changes in society and the economy.

Women

Refers to adult human females, often discussed in the context of gender roles, rights, and social and political equality.

Blacks

A term commonly used to refer to people of African descent, often associated with discussions on race, ethnicity, and social justice issues.