Question
There is a newly issued floating, lookback, 6-month put on Twitter (non-dividend-paying) stock with a stock price of $51, volatility of 30% per annum, and
There is a newly issued floating, lookback, 6-month put on Twitter (non-dividend-paying) stock with a stock price of $51, volatility of 30% per annum, and a risk-free rate of 3%. What is the price of the lookback put and a lookback call on the same stock? (Show Work)
| Stock price | $51 |
| Volatility | 30% |
| Risk-free rate | 3% |
| Price of the lookback put | ? |
| Price of the lookback call | ? |
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Benchmarking Islamic Finance
Authors: Mohd Ma'Sum Billah
1st Edition
0367546469, 978-0367546465
