Several lookback options are written on the same underlying index. They all expire in 3 years. Let

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Several lookback options are written on the same underlying index. They all expire in 3 years.

Let S(t) denote the value at time t of the index on which the option is written.

The initial index price, S(0), is 150.

The index price when the option expires, S(3), is 200.

The maximum index price over the 3-year period is 210.

The minimum index price over the 3-year period is 120.

Calculate the sum of the payoffs for the following three lookback options:

• Standard lookback call

• Extrema lookback call with a strike price of 100

• Extrema lookback put with a strike price of 100

(A) 180

(B) 190

(C) 200

(D) 210

(E) 220

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