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the price of a stock at end of one year is 60. a one year standard lookback put pays 8. Calculate the payoff of a
the price of a stock at end of one year is 60. a one year standard lookback put pays 8. Calculate the payoff of a one year extrema lookback call with strike price 55
payoff of various lookback options are:
standard lookback call: S - m
standard lookback put: M - S
extrema lookback call: max(M -K, 0)
extrema lookback put: max(K - m, 0)
the question says to calculate the payoff of a 1yt extrema lookback call... with K = 55
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