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See also: look-back and look back



lookback (plural lookbacks)

  1. Alternative form of look-back
  2. (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.