# Option, look-back option

- Canonical URL: https://www.gerhardmerk.de/option-look-back-option
- Post ID: 590494
- Modified: 2023-07-25T21:12:28+00:00
- Language: en

## Definition

Option in which the market value of the underlying is periodically recorded during a specified past period. - In the case of the price look-back option, the strike price remains unchanged. However, when calculating the option value for the underlying, its maximum value is recorded in the case of a call option and its minimum value in the case of a put option - In the case of the price lookback option, the minimum value in the case of the call option or the maximum value in the case of the put option of the underlying determines the strike price. - In the case of lookback options, both the determined strike price and the determined value of the underlying asset may differ significantly from the prices prevailing on the expiration date. As the writer of such an option, one must expect that it will always be exercised at the least favorable value. The risk is therefore correspondingly high. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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