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

question 9

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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The concept of punishment imposed on someone as vengeance for a wrong or criminal act.

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