Lookback option
= Lookback option
{wiki}
A <path-dependent contingent claim> whose payoff depends on the running minimum or maximum of the underlying <stock>. Floating-strike calls and puts pay $S_T-\min_{u\le T}S_u$ and $\max_{u\le T}S_u-S_T$, respectively. Fixed-strike versions use positive parts of the difference between a running extremum and a specified strike. A sufficient pricing state contains the current price and the relevant running extremum.