Multiple Choice
You hold a fixed-strike lookback put option written on a stock that was at-the-money at inception.The stock price at inception was $56,the stock price at maturity is $63,and the lowest and highest stock prices observed over the option's life are,respectively,$52 and $64.The payoff from the option at maturity is
A) Zero.
B) $4.
C) $8.
D) $11.
Correct Answer:
Verified
Correct Answer:
Verified
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