lookback call option

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Lookback Call Option

A call option giving the holder the right (but not the obligation) to buy the underlying asset on or by the expiration date at its lowest price that occurred between the start of the option and the time it is exercised. Because there is no set strike price and the lookback gives the option holder the highest possible flexibility, it carries a high premium (or sale price). See also: Lookback Put Option.

lookback call option

A specialized option that gives its owner the right to purchase the underlying asset at the lowest price at which it traded between the effective date and the expiration date of the option. The added advantage of being able to look back makes this option command a relatively high premium.
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