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.