Hello, you have come here looking for the meaning of the word
lookback. In DICTIOUS you will not only get to know all the dictionary meanings for the word
lookback, but we will also tell you about its etymology, its characteristics and you will know how to say
lookback in singular and plural. Everything you need to know about the word
lookback you have here. The definition of the word
lookback will help you to be more precise and correct when speaking or writing your texts. Knowing the definition of
lookback, as well as those of other words, enriches your vocabulary and provides you with more and better linguistic resources.
English
Noun
lookback (plural lookbacks)
- Alternative form of look-back
- (finance, often attributive) A kind of exotic option whose payoff depends on the optimal (maximum or minimum) underlying asset's price occurring over the life of the option.
2009, Don M. Chance, Robert Edwin Brooks, An Introduction to Derivatives and Risk Management:Another interesting path-dependent option is the lookback option. A lookback call allows you to buy the asset at the lowest price and a lookback put allows you to sell it at the highest price attained during the life of the option.
2011, Frans de Weert, Exotic Options Trading:The principle of a lookback option is to give the investor the maximum payoff based on perfect hindsight.