A standard lookback call option on stock has a value at maturity equal to (Value of the stock at maturity Minimum value of stock during the life of the option prior to maturity) or $0, whichever is greater If the minimum value reached prior to maturity was $20 11 and the value of the stock at matur...

In the text we described how we could use Monte Carlo simulation to ...

A standard lookback call option on stock has a value at maturity equal to (Value of the

Question:

A standard lookback call option on stock has a value at equal to (Value of the stock at - Minimum value of stock during the life of the option prior to or $0, whichever is greater. If the minimum value reached prior to was $20.11 and the value of the stock at is $23, for example, the call is worth $23 − $20.11 = $2.89. Briefly discuss how you might use in valuing a lookback call option?
Monte Carlo simulation
Monte Carlo simulation is a technique used to understand the impact of risk and uncertainty in financial, project management, cost, and other forecasting models. A Monte Carlo simulator helps one visualize most or all of the potential outcomes to... 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...