lookback

Alternative form of look-back.

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.

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.

The principle of a lookback option is to give the investor the maximum payoff based on perfect hindsight.