For the lookback put: a. What is the value of a lookback put if ST = 0?
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a. What is the value of a lookback put if ST = 0? Verify that the formula gives you the same answer.
b. Verify that at maturity the value of the put is ST − ST . Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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