20.15 Lookback Example(Page 462) Consider an American lookback put on a stock where S=50.=40%,『=10%,δt=1 month& the life of the option is 3 months Payoff is s maxoN We can value the deal by considering all possible values of the maximum stock price at each node (This example is presented to illustrate the methodology. amore efficient ways of handling American lookback is in Section 20.6. Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 20.15 Lookback Example (Page 462) • Consider an American lookback put on a stock where S = 50,  = 40%, r = 10%, dt = 1 month & the life of the option is 3 months • Payoff is Smax-ST • We can value the deal by considering all possible values of the maximum stock price at each node (This example is presented to illustrate the methodology. A more efficient ways of handling American lookbacks is in Section 20.6.)